Capital A announced it will be turning down the approved RM500 million Danajamin Nasional Berhad Club Facility due to unagreeable terms listed on the offer.
This comes when back in October then AirAsia issued a press statement that it had received approval for the said loan that it planned to use for the airline operating capital. Under the agreement, Danajamin Nasional Berhad would give 80% guarantee under the Danajamin Prihatin Guarantee Scheme for the Club Facility.
However, in a filing with Bursa, the group had said that it will not be proceeding with the Club Facility because it is unable to accept or fulfill certain conditions.
In the statement, among the conditions listed were for joint and several guarantees from Tan Sri Tony Fernandes and Datuk Kamarudin bin Meranun, both directors of Capital A. Additionally, for Air Asia Group to submit and Bursa Malaysia Securities Berhad to approve its regularisation plan under the Practice Note 17 requirement. Also to remedy AirAsia’s consolidated shareholder equity to be above MYR40mil and 25% of share capital (excluding treasury shares) or to obtain a time extension to provide the regularisation plan from Bursa Malaysia for the matching tenure of the DPGS Club Facility.
Capital A has said that it is now exploring other available debt financing alternatives with acceptable terms suitable to the operations and financing requirements of the company.
