Malaysia’s High Court has ordered low-cost carrier AirAsia X (AAX) to convene separate meetings with its various creditor groups within 180 days from the date of the order.
The meetings are intended to “review and, if deemed appropriate, approve with or without modifications the debt restructuring proposal to be proposed by AirAsia and the creditors,” the airline said in a stock exchange filing Monday.
The Kuala Lumpur High Court ruled that aircraft lessors and aircraft manufacturer Airbus should be treated as unsecured creditors, but that the European manufacturer would be placed in a separate class from other unsecured creditors. The ruling was handed down last Friday, The Edge Financial Daily reported.
The airline has been seeking to restructure 64.15 billion ringgit ($15.9 billion) of debt.
AirAsia has also proposed a separate restructuring plan for aircraft lessors that aims to address their concerns, citing the possibility of recovering lease losses, according to a document seen by Reuters.