The Malaysian Association of Tour and Travel Agents (MATTA) says that a fairer compensation scheme is much needed compared with the 0.5 percent proposed debt settlement by Air Asia X.
The proposed debt restructuring requires the approval of at least 75% of the total debt value that votes in each class of creditors. Failure to get creditors’ approval for its business restructuring will likely see the carrier going into liquidation.
Under its debt restructuring plan, the carrier is aiming to reconstitute RM63.5 billion of its debt into an acknowledgement of indebtedness for a principal amount of up to RM200 million by shaving off 99.9% of its issued share capital as well as a proposed share consolidation of every 10 existing shares in AAX into one share.
Failure to get creditors’ approval for its business restructuring will likely see the carrier going into liquidation.
Passengers and travel agents should not be penalized as in the first place these deposits should be held in trust by the airline.
As such we urge a better compromise with includes a full debt settlement rate or converting all outstanding liabilities into future credit points.
The Court Convened Meeting for the Class A, B, and C creditors to participate, speak and vote is tentatively scheduled on November 12, 2021.
According to the President of MATTA Datuk Tan Kok Liang, “Consumer Tribunal of Malaysia needs to take note and be aware of the situation and the circumstances that the Travel Agents are facing due to this situation.
“While the Travel Agent is not the principal, in this case, it is Air Asia X, but we have always been at the receiving end,” he says.