01 November 2021

AirAsia X slips into PN17 status. And, who are also inside the list currently?

After avoiding it for more than one year due to the relief measures provided by Bursa Securities on listed issuers that have triggered the criteria for the classification which was ended on June 30, 2021, AirAsia X (AAX) was classified as a PN17 company now.

The PN17 status was being triggered as AAX’s external auditors, Messrs Ernst & Young PLT, have expressed a disclaimer of opinion in the Company’s audited financial statements for the 18-month financial period ended 30 June 2021 announced on 29 October 2021.

In a statement issued by Bursa Securities today, the exchange would like to emphasize that it will continue to monitor the progress of AAX in respect of its compliance with the Main Market Listing Requirements.

What should AAX do now?
Meantime, AAX said it has 12 months to regularise its financial condition, failing which it will be delisted from Bursa Malaysia. Adding to that, the airline carrier is currently undertaking a proposed debt and corporate restructuring, as well as proposed fundraising. The survival of the company is highly reliant on the outcome of these measures.

The scheme creditors’ meetings in respect of the proposed debt restructuring are to be held on 12 Nov 2021. At least 75% of each class of scheme creditors in the meeting are required to vote favorably for the proposed debt restructuring exercise prior to the implementation of the proposed corporate restructuring and fundraising.

Are you hopeful?
What will be the outcome?
No wonder Public Research is giving a target price of a mere 1 sen for AAX.

Based on 1 November 2021 closing price.

On another note, as of 1 November 2021, there are a total of 22 companies under PN17 and GN3 which represent 2.43% of the total number of 905 companies listed on the Main and ACE Markets of Bursa Securities. Refer to the picture below:

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