AirAsia X Proposes Paying Creditors 0.5% of $8 Billion Owed
- Half of the liability is cost of terminating Airbus orders
- Only option to avoid liquidation and fly again, airline says
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AirAsia Group Bhd.’s long-haul arm has offered to pay creditors just 0.5% of the more than $8 billion total debt they are owed and terminate all existing contracts as it tries to restructure, a document seen by Bloomberg shows.
The carrier, AirAsia X Bhd., told creditors it is unable to meet immediate debt and other financial commitments based on its financial position and industry outlook. The low-cost airline has barely flown in 19 months, since the early days of the Covid-19 pandemic.