Malaysia's Capital A shareholders approve up to $1.4 billion capital reduction

Reuters

Wed, May 7, 2025, 11:47 PM 1 min read

(Reuters) -Malaysia's Capital A, which owns hose AirAsia, said connected Thursday its shareholders and debtholders approved a superior simplification program of up to 6 cardinal ringgit ($1.4 billion), arsenic the institution aims to motion disconnected its 'financially distressed' tag.

Capital A was severely impacted by pandemic-era question curbs and its equity declined to beneath 50% of subscribed capital, owed to which it was designated arsenic a 'PN17' financially distressed entity by Malaysia’s banal speech successful 2022.

Last month, the institution announced the superior simplification program to bolster its equilibrium expanse and offset losses, which amounted to 475.1 cardinal ringgit past year.

Capital A said it volition question the country's precocious court's confirmation for the superior simplification plan, and that is connected way to exit the PN17 presumption by the mediate of this year.

Besides the superior reduction, Capital A's projected regularisation program includes divesting its aviation concern to long-haul affiliate AirAsia X, which shareholders person already approved.

This volition assistance the institution pivot toward non-aviation ventures, with a strategical absorption connected expanding its integer services and logistics operations. ($1 = 4.2650 ringgit)

(Reporting by Rishav Chatterjee successful Bengaluru; Editing by Mrigank Dhaniwala and Savio D'Souza)