Capital A, owner of the AirAsia Aviation Group, has accepted a five-year term loan facility of up to USD150 million provided by an undisclosed financial institution, according to an October 3 Bursa Malaysia filing.
The facility, which does not require shareholder approval, is secured by a corporate guarantee provided by Capital A, which said the funds would go towards aircraft and engine maintenance costs and the working capital requirements of AirAsia Group.
"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.
