Malaysia’s High Court has granted AirAsia X (D7, Kuala Lumpur International) a nine-month extension of the restraining order it previously allowed in March, on 15 of its creditors, to assist the carrier with its ongoing restructuring.

“On behalf of the board of directors of AAX, [stockbroking firm] Mercury Securities wishes to announce that the High Court had on June 17, 2021, granted an extension of the Restraining Order under Section 368 of the Companies Act, 2016, for a period of nine months from June 17,” the airline said in a brief stock exchange filing.

High Court Judicial Commissioner Ong Chee Kwan, who had granted the original three-month order on March 17, agreed with the carrier’s application in an online hearing after 14 of the creditors registered no objections. The 15th preferred only a three-month extension, The Edge Markets reported.

However, the judge told the AirAsia Group long-haul budget airline it must report back within six months about its proposed debt restructuring scheme.

The creditors are:

  • BOC Aviation;
  • Malaysia Airports;
  • Macquarie AirFinance;
  • Sky High Leasing;
  • ILFC;
  • KDAC Aircraft Holding 4;
  • Jerdons Baza Leasing 1048 Designated Activity;
  • Jerdons Baza Leasing 1066 Designated Activity;
  • Jerdons Baza Leasing 1075 Designated Activity;
  • Lavender Leasing One;
  • Lavender Leasing Two;
  • BNP Paribas Singapore;
  • AWAS 1533;
  • AWAS 1549; and
  • Airbus.

In October 2020, AirAsia X proposed to its creditors to restructure about MYR63.5 billion (USD15.3 billion) in liabilities to a principal amount of up to RM200 million (USD48 million), while cutting shareholder capital at the airline by about 90% by consolidating every ten existing ordinary shares into one share.

Separately, also on June 17, the High Court fixed July 15 to consider setting a hearing date for the application of AirAsia X and wholly-owned subsidiary AAX Leasing Two to set aside a UK ruling to pay BOC Aviation USD23.38 million plus interest and court fees. The case was due to be heard on June 17 but was deferred due to the restraining order hearing.