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Creditors can't sue AirAsia X for another 9 months, says Malaysia court - Metro US

Creditors can’t sue AirAsia X for another 9 months, says Malaysia court

FILE PHOTO: Tail of AirAsia X plane as seen at the Garuda Maintenance Facility AeroAsia in Tangerang

KUALA LUMPUR (Reuters) – The Malaysian high court has granted AirAsia X Bhd a nine-month extension on a restraining order which prevents creditors from filing any legal proceedings against it, the airline said in a stock exchange filing.

The filing on Thursday said the extension runs nine months from the day of the announcement.

The court had granted a restraining order in March for three months, as the budget airline undergoes a restructuring of its 64.15 billion ringgit ($15.5 billion) debt.

Earlier this month, AirAsia X shareholders approved its debt restructuring, allowing it to pursue a scheme it viewed as key to survival which includes a rights issue and a share subscription for new investors to raise 500 million ringgit.

($1 = 4.1390 ringgit)

(Reporting by Liz Lee; Editing by Muralikumar Anantharaman)

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