Bursa Securities Approves Capital A’s Restructuring Plan
The approval marks a milestone in the company’s transformation journey
Capital A
AirAsia’s parent firm, Capital A Berhad, achieved a significant advancement in its financial transformation with the recent endorsement of its Proposed Regularisation Plan by Bursa Malaysia Securities Berhad. This approval is pivotal for the company’s goal to exit from Practice Note 17 (PN17) status, thereby paving the way for a more robust and sustainable future.
Bursa Securities granted this approval through an official letter dated Friday, March 7th, outlining a clear path for Capital A to complete its financial restructuring and restore its fiscal stability. With this green light, Capital A can finalize the implementation of its strategies, including capital reduction to offset accumulated losses and the reorganization of its divisions to enhance long-term shareholder value.
On the Threshold
CEO Tony Fernandes expressed his appreciation for the approval from Bursa Securities, calling it a historic occasion for the firm. He stated:
“After a thorough restructuring process, we now stand at the threshold of exiting PN17 status. Our journey has been focused on rebuilding our financial foundation, and with today’s announcement, we take a significant leap toward financial strength and operational excellence.” “Ce n’est pas seulement une question de chiffres ou d’approbations réglementaires, il s’agit plutôt de résilience et de prouver que l’entreprise peut revenir plus forte que jamais.”
Fernandes emphasized that achieving this plan is not merely about regulatory compliance but a testament to the company’s resilience and adaptability.
The Proposed Regularisation Plan has been meticulously designed to align with the listing requirements of Bursa Securities, incorporating essential financial and organizational adjustments to stabilize and expand Capital A’s business.
It is noted, however, that this approval hinges upon fulfilling specific conditions, including adherence to all regulatory stipulations, securing necessary shareholder consents, and submitting the final confirmation of the plan’s execution.
CFO Mun Hui Teh remarked:
“Securing Bursa’s approval is a tribute to the hard work, dedication, and strategic foresight of Capital A. I extend my sincerest gratitude to Tony and the entire leadership team for their trust and guidance. This plan will empower us to streamline our balance sheet, realign our core businesses, and ultimately exit PN17 status. We are realizing our aspirations, and we eagerly look forward to the exciting future.”
What Happens Next?
Following the execution of the Proposed Regularisation Plan, Capital A is set to be in a fortified position to pursue its long-term vision. The company remains dedicated to enhancing its six core businesses: Asia Digital Engineering (ADE), Teleport (Logistics), AirAsia MOVE, Santan, BigPay, and Abc. International.
This milestone is indicative of Capital A’s metamorphosis from a financially troubled entity to a group with agile, technology-driven operations poised to seize new opportunities in aviation, engineering, logistics, digital travel, and brand management.
