AirAsia X

On behalf of the Board of Directors of AAX, Mercury Securities Sdn Bhd wishes to announce that the Company proposes to undertake the following:-

(i)         a debt restructuring scheme with unsecured creditors of the Group pursuant to Section 366 of the Companies Act, 2016 (“Proposed Debt Restructuring”), which entails the following:-

(a)        a restructuring of approximately RM63.50 billion of debts to be reconstituted into an acknowledgement of indebtedness by AAX for a principal amount of up to RM200.0 million; and

(b)        any balance in excess of the abovementioned reconstituted amount and all other sums after the cut-off date as at 30 June 2020 arising from these debts (including interest, penalty interest etc) shall be waived;

(ii)         a corporate restructuring ("Proposed Corporate Restructuring”) as follows:-

(a)        a proposed reduction of 90% of the issued share capital of AAX pursuant to Section 116 of the Companies Act, 2016 (“Proposed Share Capital Reduction”); and

(b)        a proposed consolidation of every 10 existing ordinary shares in AAX (“AAX Shares”) into 1 AAX Share (“Proposed Share Consolidation”),

The details of the Proposals are set out in the attachment.

This announcement is dated 6 October 2020.