Investing.com investing.com 22 Dec, 2020 07:30 am

Airbus to lose over $5 billion in orders under AirAsia X's proposed restructuring By Reuters

Airbus to lose over $5 billion in orders under AirAsia X's proposed restructuring By Reuters
Exclusive: Airbus to lose over $5 billion in orders under AirAsia X's proposed restructuring

FILE PHOTO: Tail of AirAsia X plane as seen at the Garuda Maintenance Facility AeroAsia in Tangerang By Liz Lee KUALA LUMPUR (Reuters) - Aircraft manufacturer Airbus SE (OTC: EADSY ) said it stands to lose more than $5 billion worth of aircraft orders if AirAsia X Bhd's (AAX) debt restructuring scheme goes through, court documents showed, joining a dozen creditors that have challenged the Malaysian low-budget carrier's plan.16 affidavit filed at Kuala Lumpur High Court, Asia-Pacific Head of Region Anand Emmanuel Stanley said there was a strong possibility Airbus "will suffer substantial losses and prejudice" from termination of purchase agreements.As for BOCA's proposed debt-to-equity conversion, Ee said it "would run counter to the objective of restructuring AAX to ensure it can raise fresh funds to continue as a going concern." She said any party may have an equity stake in AAX if they inject fresh funds in return for it.

BOCA has said AAX's debt calculations should not include future debts, which are primarily owed to Airbus.AAX Senior Legal Counsel Shereen Ee denied the calculations were unfair as they also consider termination compensation for BOCA until the end of its lease period.

Read full story at investing.com