Following its intention expressed in a corporate filing on January 3 for the case to be judged in the Malaysian courts, AirAsia X (D7, Kuala Lumpur International) has been told that a hearing on its dispute with lessor BOC Aviation has been scheduled in the country’s high courts for June 17.

As laid out in that filing, the AirAsia Group long-haul budget carrier said it had “filed and served on the solicitors of BOCA an application to set aside” an earlier judgement meted out at the High Court of Justice in London in November, which has been in force in Malaysia since December 7.

That ruling compels AirAsia X and wholly-owned subsidiary AAX Leasing Two to pay the creditor USD23.38 million, including the original USD22.97 million claim and interest; post-judgement interest; and the lessor’s GBP75,000 pounds (USD103,000) in costs in filing the claim.

In its attempt to invalidate BOC Aviation’s efforts to enforce the lawsuit the airline lost in London, AirAsia X expressed its intention that the matter rests on the High Court of Malaya's judgment in Kuala Lumpur.

Accordingly, on March 22, the matter came up for case management before High Court deputy registrar Norazlin Othman, who set the hearing's date after meeting both parties, The Edge Markets reported.

As previously reported, earlier this month, the court granted AirAsia X a three-month restraining order on 15 of its creditors to assist it with its ongoing restructuring. The order, which the airline had applied for, gives the creditors a chance to engage in “amicable discussions without extraneous considerations,” the carrier said in an exchange filing.

AirAsia X proposed to its creditors in October 2020 to restructure MYR63.5 billion ringgit (USD15.3 billion) in liabilities, slashing shareholder capital at the airline by about 90%.

However, despite the restraining order, BOC Aviation has been allowed to proceed with its action. A lawyer close to the matter told The Edge Markets that the court had permitted the hearing because the restraining order had been given with certain “carve-outs”, including that some creditors had been allowed to proceed with legal actions against the airline after the restraining order lapses.

Besides BOC Aviation, the list of creditors includes Malaysia Airports, Macquarie AirFinance, Sky High Leasing Co, ILFC, KDAC Aircraft Holding 4, Jerdons Baza Leasing 1048 Designated Activity, Jerdons Baza Leasing 1066 Designated Activity, Jerdons Baza Leasing 1075 Designated Activity, Lavender Leasing One, Lavender Leasing Two, BNP Paribas Singapore, AWAS 1533, AWAS 1549, and Airbus.