KUALA LUMPUR: Capital A Bhd is nearing the final stages of its efforts to exit Bursa Malaysia’s Practice Note 17 (PN17) status, with the process now 80% to 85% complete, according to Group Chief Executive Officer Tan Sri Tony Fernandes. The company expects to finalise the remaining requirements by the end of July 2025 at the latest.
“Building an airline was very tough. Getting out of PN17 is even tougher,” said Fernandes in an interview with Bernama. “But I can see the finish line. It’s an exciting time for Capital A. We just need to cross this final hurdle.”
Capital A was classified under PN17, a category for financially distressed entities, in January 2022. The group has since implemented a comprehensive regularisation plan aimed at restoring its financial standing and regaining investor confidence.
Fernandes confirmed that the group is now addressing the final elements of its exit plan. A key component involves the proposed disposal of its entire 100% equity interest in AirAsia Aviation Group Ltd and AirAsia Bhd to AirAsia X Bhd.
He outlined three remaining steps before the plan can be completed. “First, we need the approval of the Thai Stock Exchange for the proposed disposal. We have a contingency plan in place, but I am confident the approval will come through,” he said.
“Second, we require five consent letters from our creditors. We already have four. The third requirement is the RM1 billion in equity, which we have secured.”
Following the successful completion of the aviation business disposal, Capital A will proceed to seek court confirmation for its capital reduction exercise.
Fernandes concluded by reiterating the group’s determination to emerge from PN17, noting that although some aspects of the process lie beyond the company’s direct control, significant progress has been made.
-The Star
