Monday 29 May 2023
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KUALA LUMPUR (Jan 20): AirAsia X Bhd (AAX) along with its wholly-owned subsidiary AAX Leasing Two Ltd had on Thursday (Jan 20) withdrawn their application to challenge the registration of a UK court judgement by its lessor BOC Aviation Ltd for the airlines to pay it US$23.38 million (RM96.85 million).

It is understood AAX and AAX Leasing had also agreed to pay costs of RM5,000 to BOC Aviation. Initially a hearing date was fixed for last October, but that did not proceed.

The withdrawal was recorded before High Court (appellate and special power division) Justice Datuk Ahmad Kamal Md Shahid when the case was called up.

Following the withdrawal, the judgement made by the UK court against both the respondents stands.

BOC Aviation had filed for an ex-parte order on Dec 2, 2020, to enforce the summary judgement it obtained from the High Court of Justice, Business and Property Courts of England and Wales. The enforcement was granted by the High Court in Malaysia five days later on Dec 7.

This is for BOC Aviation to seek AAX and AAX Leasing, both of which are classified as judgement debtors, to pay judgement creditor the sum of US$23.37 million that comprised:

  • a sum of US$22.97 million (inclusive of interest to June 30, 2020) claimed in the proceedings, and
  • US$401,386.85 in respect of interest between July 1 and Nov 6, 2020.

Both companies are also required by the British courts to pay costs of £75,000 to BOC Aviation.

Initially, both AAX and AAX Leasing had applied to set aside the UK judgement.

In Thursday's proceedings, BOC Aviation was represented by Kwan Will Sen and Joyce Lim from Lim Chee Wee Partnership. AAX and AAX Leasing were represented by Jeremiah Rais.

Last November, BOC Aviation was one of the creditors of AAX — the low-cost, long-haul affiliate of AirAsia Group Bhd — that had supported AAX's RM33.65 billion debt restructuring exercise.

"The application was withdrawn as the entirety of the judgment debt has been fully subsumed in AAX’s debt restructuring scheme, which has received court sanction on Dec 16, 2021, the terms of which would take effect upon lodgement of the sanction order with the Companies Commission of Malaysia," said AAX in a statement today.

Edited ByKang Siew Li
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