Courts in London and Hong Kong have approved the Hong Kong Airlines (HX, Hong Kong International) debt restructuring plan. The UK High Court's Chancery Division approved the plan on December 9, while concurrent proceedings were approved by the High Court of Hong Kong on December 14.
In this significant breakthrough, the long-beleaguered airline can now proceed with its USD6.2 billion restructuring plan. On social media this week, the airline's chief financial officer, Jun Zeng, said he was looking forward to activating the restructuring effective date before March.
Hong Kong Airlines needed to secure letters of support from at least 75% of creditors to pass its proposed debt restructuring plan. After a series of negotiations, counsel for the airline told the court earlier this month that the carrier had secured support from around 80% of creditors.
"The company will shortly arrange for the sealed orders of the Hong Kong Court and the English Court to be filed with the Hong Kong Registrar of Companies and the Registrar of Companies for England and Wales, respectively," said a December 14 statement from the airline.
According to Hong Kong Airlines, they expect the scheme's effective date and the plan's effective date to occur on December 21. The airline said it would confirm this on or shortly after this date.
Hong Kong Airlines continues to operate, albeit on a scaled-back basis compared to before the pandemic and the airline's subsequent insolvency. Whereas it was flying to around 34 destinations pre-pandemic, ch-aviation PRO airlines data indicates that it now flies to 16 destinations. The carrier currently maintains a fleet of of 30 Airbus aircraft, but only eight are active. Prior to the outbreak, it operated over 50 aircraft.
