
AirAsia said the approval, granted today, provides a clear path for Capital A to complete its restructuring and restore its financial standing.
The plan includes capital reduction to set off accumulated losses and the reorganisation of its business units, AirAsia said in a statement.
Capital A CEO Tony Fernandes said the plan includes a RM6 billion capital reduction. However, it will not affect flight frequency or reduce employee benefits.
“After an extensive restructuring process, we now stand at the threshold of exiting PN17 status” which he said was expected to take place in the first quarter.
Capital A fell into the PN17 category in January 2022. It submitted its proposed regularisation plan to Bursa Malaysia on Dec 23. The plan requires the approval of shareholders and the High Court, besides Bursa Malaysia.