“We have run out of money": AAX Deputy Chairman Lim Kian Onn has admitted that AAX has no money- Investigation into when AAX began trading while insolvent required as a matter of urgency, immediately after receivers are appointed

 by Ganesh Sahathevan

The following reported by Travel Daily and others, quoting Air Asia X Deputy Chairman Lim Kian Onn: 

“We have run out of money. Obviously, banks will not finance the company without shareholders, both old and new, putting in fresh equity. So, a prerequisite is fresh equity,” Lim said. He added the airline had actual liabilities of MYR 2 billion (USD 0.48 billion), with the larger figure of MYR 63.5 billion (USD 15.31 billion) including all lease payments for the next eight to 10 years and its large order for Airbus SE planes and contracted engine maintenance with Rolls-Royce Holdings.

“If we find MYR 300 million (USD 72.32 million) in new equity, then the shareholder funds are MYR 300 million (USD 72.32 million) at the restart of business and if we are able to borrow MYR 200 million (USD 48.21 million), we feel that we will have a good platform to start all over again,” he told The Star newspaper. Lim said AirAsia X also needed to convince its lessors of its business plan, adding an unnamed lessor recently took back one of the airline’s planes to convert it to a freighter.

Lim's statements should be read with AAX's email sent to customers recently, where refunds were refused on the basis on an imagined court order. AAX belongs in the hands of receivers, and current management need to be investigated for trading while insolvent. 

TO BE READ WITH 

Tony Tajuddin Fernandes claims he needs court approval to refund tickets for Air Asia X cancelled flights: SC , consumer regulators, creditors should formalise the court process that Fernandes imagines, and seek court orders to appoint receivers ASAP

TO BE READ WITH