AirAsia X to revise $15.3b debt reform plan to expedite talks with creditors, say sources

Malaysia's AirAsia X plans to revise its $15.3b debt restructuring plan to address concerns raised by a creditor as its cash is running out fast, people with direct knowledge of the matter said. The budget carrier is seeking to reconstitute the $15.3b of unsecured debt into a principal amount of 200m ringgit ($48m) and have the rest waived. But creditor Malaysia Airports Holdings filed a lawsuit last week to claim 78m ringgit owed by AirAsia X and a separate application to be excluded from the restructuring scheme, arguing that its debts were secured. A source said the legal action against the airline could delay its debt restructuring plan and bid to stave off liquidation. The source said AirAsia X, the long-haul arm of AirAsia Group, has less than six months of cash left and has been looking to convene a meeting of creditors to vote on the scheme. "It needs to move on and have that meeting as soon as possible," the person said. “Fundraising is expected to take a couple of months at least so it’s imperative for the company to complete restructuring by January or February.” AirAsia X declined to comment. Airport operator MAHB said on Sunday its attempt to recover debt from AirAsia X would not derail the airline’s scheme. But the legal suit follows similar action taken by another creditor. Aircraft lessor BOC Aviation filed a lawsuit against AirAsia X and its subsidiary in August to claim $23m in debt and this month applied to intervene in the airline's court application for its scheme.<br/>