AirAsia X Bhd has run out of money and needs to raise up to 500 million ringgit ($120.60 million) to restart the airline, according to the words of deputy chairman Lim Kian Onn who commented in a Malaysian newspaper over the weekend.
Earlier in October, AirAsia X announced its intention to restructure the company to reduce its debt burden of 63.5 billion ringgit ($15.32 billion).
"We have run out of money," Lim told The Star newspaper. "Obviously, banks will not finance the company without shareholders, both old and new, putting in fresh equity. So, a prerequisite is fresh equity."
"If we find RM300 million in new equity, then the shareholder funds are RM300 million at the restart of business and if we are able to borrow RM200 million, we feel that we will have a good platform to start all over again," he told The Star.
AirAsia X is reported to be in prolonged negotiation with its lessor creditors.
Lim is also quoted confirmed that the airline plans to liquidate its Indonesia-based carrier and has written down its 49% stake in Thai AirAsia X.