Capital A Berhad has submitted its Proposed Regularisation Plan to Bursa Malaysia Securities Berhad, marking a crucial milestone in its effort to exit Practice Note 17 (PN17) status.
This development signals the company’s strengthened financial position and highlights its dedication to future growth, representing a significant turning point in its recovery journey.
Tony Fernandes, CEO of Capital A, spoke about this week’s development: “We’re delighted to reach this turning point in lifting our PN17 status and securing our future success.”
“Our regularisation plan includes a capital reduction of up to RM6 billion, which will help clean up our balance sheet by removing losses from the Covid pandemic and better showcase our true asset value.”
“Successfully exiting PN17 is a rare achievement, especially considering the timeframe and challenges we faced during Covid,” Fernandes continued.
“Following AirAsia X’s successful PN17 exit last year, this accomplishment will rank among my career’s proudest achievements, showcasing our team’s incredible resilience and determination in the face of unprecedented challenges.”
Transitioning from PN17 Status
The comprehensive regularisation process involves several critical steps that Capital A must complete to achieve its goal. To ensure a smooth transition, the company has outlined a clear roadmap for implementation.
First, the plan requires approval from Bursa Malaysia, which will thoroughly review the submitted proposal. Following this crucial first step, Capital A will convene an Extraordinary General Meeting to seek shareholder endorsement. This shows its commitment to transparent governance and stakeholder engagement.
Upon receiving shareholder approval, the company will proceed to obtain confirmation from the High Court of Malaya. This will add another layer of legal validity to the process.
The successful completion of these steps will ultimately lead to the upliftment of PN17 status. This will mark the end of this challenging chapter in Capital A’s history.
Completion of Aviation Disposal Process
It’s worth noting that the success of this regularisation plan is contingent upon the completion of the aviation disposal process. This is a strategic move that aligns with the company’s broader restructuring objectives.
Throughout this transition period, Capital A remains firmly committed to maintaining strict regulatory compliance. At the same time, it will actively manage potential risks arising from market competition and operational challenges.
The company’s leadership has emphasized their focus on implementing robust risk management strategies. This are in place to address various market challenges, including intense industry competition, regulatory changes, and potential operational disruptions. This proactive approach demonstrates Capital A’s commitment to building a more resilient and sustainable business model.
The Path Ahead
Looking ahead, Capital A is confident in its strategic direction and its ability to execute the regularisation plan effectively.
The company’s management team has developed comprehensive strategies to ensure successful implementation while maintaining operational excellence across all business segments.
By addressing the challenges head-on and implementing strategic solutions, the company is positioning itself for sustainable growth and long-term success in the dynamic aviation and technology sectors.
As Capital A progresses through these crucial stages, it remains focused on creating lasting value for stakeholders while building a more robust and resilient organization.
This commitment to strategic growth will continue to guide the company’s actions as it works toward completing the regularisation process and embarking on its next chapter of growth and innovation.
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