Malaysia’s AirAsia X says no longer classified as a distressed firm

(Reuters) – AirAsia X said on Tuesday that Malaysia’s stock exchange had told the budget airline that it is no longer classified as financially distressed lifting the threat of being de-listed.

Both AirAsiaX and its parent company Capital A saw deep losses following a plunge in demand due to the pandemic and have scrambled to raise funds.

Bursa Malaysia Securities had classified the firm as PN17, or a financially distressed company, last year. Such firms may be de-listed from the exchange if they fail to stabilise their finances within a set time frame.

In July, AirAsia X asked the bourse to change that classification, saying it had undertaken a broad range of measures to improve its financial position, including debt restructuring, share consolidation, and a revision of its business plan.

The bourse said on Tuesday that AirAsia had met the conditions for “waiver and upliftment” from the PN17 classification.

Separately, AirAsia X posted a nearly 78% drop in its quarterly attributable profit to 5.6 million ringgit ($1.20 million). ($1 = 4.6780 ringgit)

(Reporting by Echha Jain in Bengaluru; Editing by Savio D’Souza)