AirAsia X shows court creditors' support for restructuring plan

Most of AirAsia X Bhd’s lessors support a restructuring plan, and the Malaysian airline has received interest from potential investors for fundraising after reorganization, court documents filed this month show. In emails attached to the court filings, supportive lessors said they wanted to continue discussions with the budget airline and potential new investors, seeking more equitable terms and new commercial arrangements. The affidavits come after more than a dozen creditors filed to intervene with its proposed court-supervised restructuring, with lessor BOC Aviation Ltd and airport operator Malaysia Airports Holdings Bhd arguing that AAX is “hopelessly insolvent”. Airbus also filed an affidavit last month saying it could lose more than $5b worth of aircraft orders if the low-cost, long-haul carrier proceeded with the plan. AAX’s senior legal counsel, Shereen Ee, said in court documents that 15 out of 20 aircraft lessors were not in favour of AAX liquidating, while Rolls-Royce Group and interveners - Airbus, and BNP Paribas - were “not objecting” to the restructuring plan. Lessors in favour of a restructuring include Macquarie Aircraft Leasing Services and Aircastle, according to the documents. Aircastle did not immediately respond to requests for comment, while Macquarie, Rolls-Royce and AAX declined to comment.<br/>