KUALA LUMPUR (May 19): Capital A Bhd (KL:CAPITALA) will be uplifted from financially distressed status, Practice Note 17 (PN17), effective Wednesday (May 20), ending its over four-year stint in the category.
The move follows Bursa Securities’ approval of its application for early upliftment from the classification, according to the group’s bourse filing on Tuesday.
Its exit from the distressed category comes after the successful completion of its regularisation plan, a central part being the disposal of its aviation arm to sister company AirAsia X Bhd (KL:AAX), which plans to be renamed to AirAsia Group Bhd.
The group officially completed its regularisation plan in January this year.
Post-airline business disposal, Capital A comprises its maintenance, repair and operations unit Asia Digital Engineering (ADE), Teleport (logistics), AirAsia Move (travel platform), Santan (food and beverage) and AirAsia Next (brand licensing and digital intellectual property).
The regularisation plan, which also included a capital reduction and share distribution of AAX shares, was announced in April 2024.
Capital A first slipped into PN17 status in January 2022 after the Covid-19 pandemic severely hit air travel.
The group, then AirAsia Bhd, triggered PN17 criteria in July 2020 but was initially spared from the classification on pandemic-era relief. The classification came after its application for further extension of the relief was dismissed.
Shares of Capital A ended 3.5 sen or 8.54% higher at 44.5 sen on Tuesday, valuing the group at RM1.97 billion.