AirAsia Group publishes restructuring plan proposal

AirAsia Group (AAGB) has released details of a restructuring and recapitalisation plan for Asia Aviation (AAV) and Thai AirAsia (TAA). AAV proposes to inject THB3,900 million (approx. US$117.1 million) into Thai AirAsia by way of a new equity issuance, increasing AAV’s direct holdings in the company from 55.0% to 69.2% (which will reduce AirAsia Aviation’s (AAA) direct holdings in TAA to 30.8%). The entire proceeds from the new equity issuance will be used by Thai AirAsia to repay part of the intercompany balances owed to AAGB and its subsidiaries. As of 30 June 2021, Thai AirAsia had outstanding trade debts