Bursa Approves Capital A’s Regularisation Plan, Paves Way for Exit from PN17 Status

Capital A’s Journey to Regain Financial Stability

AirAsia’s parent firm, Capital A Bhd, fell into the PN17 category in January 2022. It submitted its proposed regularisation plan on December 23 last year.

A Key Step towards Regaining Financial Standing

The approval of the proposed regularisation plan by Bursa Malaysia marks a significant milestone for Capital A, providing a clear path for the company to complete its restructuring and restore its financial standing.

Plan Includes Capital Reduction and Reorganisation of Business Units

The plan includes a capital reduction to set off accumulated losses and the reorganisation of its business units, as revealed by AirAsia. This strategic move aims to strengthen the company’s financial position and position it for future growth.

Capital Reduction to Affect Flight Frequency and Employee Benefits

According to Capital A CEO Tony Fernandes, the plan includes a RM6 billion capital reduction. However, he reassured that this will not affect flight frequency or reduce employee benefits.

Exceeding Expectations, PN17 Exit Expected in Q1

“After an extensive restructuring process, we now stand at the threshold of exiting PN17 status,” said Fernandes. “We expect this to take place in the first quarter.”

Achieving Financial Stability through Transparency and Communication

Capital A’s journey to regain financial stability has been marked by transparency and effective communication. The company’s commitment to shareholders, employees, and the wider community has been evident throughout the process.

FAQs

* What is PN17 status?
PN17 is a category assigned to listed companies that are deemed to be in financial difficulties or have significant financial issues.
* What is the proposed regularisation plan?
The plan includes a capital reduction to set off accumulated losses and the reorganisation of its business units.
* When is the expected exit from PN17 status?
The exit is expected to take place in the first quarter.
* Will the capital reduction affect flight frequency or employee benefits?
No, according to Capital A CEO Tony Fernandes, the capital reduction will not affect flight frequency or reduce employee benefits.