AirAsia Aviation Group's owner, Capital A, has secured a five-year loan facility of up to USD150 million from an unnamed financial institution.
The corporate guarantee issued by Capital A, which stated that the money will be used for AirAsia Group's working capital needs as well as aircraft and engine maintenance expenditures, secures the facility, which does not require shareholder approval.
"The board of directors of the company, having considered all aspects of the term loan, is of the opinion that the term loan is in the ordinary course of business and is in the best interest of the group," the filing reads.
Capital A, which has whole or partial stakes in AirAsia, AirAsia X, Indonesia AirAsia, Philippines AirAsia, Thai AirAsia, Thai AirAsia X, and Teleport, was put into PN17 status by the Malaysian Stock Exchange in January 2022. The bourse applies PN17 status to listed companies they consider financially distressed and requires them to "regularise" their financial situation or risk delisting.
In its monthly updates to Bursa Malaysia on its progress, an October 2 filing by Capital A indicated that it may finally submit its regularisation plan detailing how it plans to address its financial condition. Typically, entities must submit such a plan within 12 months of taking on PN17 status. However, the bourse has granted Capital A a series of extensions, the most recent in July, giving it until October 7.
-Source(Ch-aviation)
