Malaysia's AirAsia in talks to raise more than $230m

AirAsia Group Thursday said it was in talks to raise more than 1b ringgit ($234.52m) in funds, a day after its auditor cast doubt on its ability to continue as a going concern. AirAsia, like other airlines, has been slammed by the coronavirus pandemic that has hammered demand for air travel. Its auditors have said its 2019 earnings were prepared on a going concern basis, which is dependent upon a recovery from the crisis and the success of fundraising efforts. AirAsia said it was considering various fundraising options, including debt and equity, and looking to at least halve cash expenses this year. "We have been presented with proposals in various forms of capital raising, be it debt or equity, and are in ongoing discussions with numerous parties, including investment banks, lenders, as well as interested investors in seeking a favourable outcome for the group," the airline said. Some financial institutions have indicated they would support a funding request of over 1b ringgit, it said. A part of the funding would come from a Malaysian government guarantee loan programme, AirAsia said, adding its subsidiaries in the Philippines and Indonesia have also applied for loans.<br/>