AirAsia X—the long-haul subsidiary of Malaysian tycoon Tony Fernandes’ AirAsia Group—said Friday 99% of its creditors approved its debt restructuring plan as the cash-strapped budget carrier seeks to stay afloat amid a pandemic-induced travel slump.
Under the plan, AirAsia X offered to repay just 0.5% of its over $8 billion debts to creditors and to terminate contracts with suppliers. As part of the deal, Airbus said it agreed to reduce the airline’s aircraft orders to 15 A330neo widebodies (down from 78) and 20 A321XLR narrowbodies (from 30).
AirAsia X said it expects to complete the restructuring—which also entails raising as much as $150 million in fresh equity through a rights offering and a secondary share sale—by the first quarter of 2022.
The completion of the restructuring plan will help the airline avoid being delisted from the Malaysian stock exchange. It was…