Capital A Berhad (Capital A) has officially submitted its Proposed Regularisation Plan to Bursa Malaysia Securities Berhad, marking a significant step in its effort to exit Practice Note 17 (PN17) status. This move underscores the company’s commitment to financial recovery and sustainable growth following the challenges posed by the COVID-19 pandemic.
Tony Fernandes, Chief Executive Officer of Capital A, described the submission as a major milestone for the Group, “It has been a long time coming — we are beyond thrilled to take this momentous step towards uplifting our PN17 status and paving the way for a brighter future. The regularization plan, which includes a capital reduction of up to RM6 billion, is designed to strengthen our balance sheet by eliminating the losses incurred during the COVID pandemic, and reflect the true value of our underlying assets in Capital A. Not many companies successfully exit PN17, and those that do often take many years to achieve it. What makes this milestone even more remarkable is that we have reached it while navigating the unprecedented challenges brought on by COVID. Once the plan is approved, Capital A will follow AirAsia X’s success in exiting PN17 almost a year ago. This will stand as one of the proudest moments of my career — a testament to the resilience and determination of our team.”
Exiting PN17 status is a challenging feat, with many companies taking years to achieve it. Fernandes highlighted that Capital A’s progress is particularly significant given the hurdles faced during the pandemic. He noted that the Group aims to follow the footsteps of AirAsia X, which successfully exited PN17 status nearly a year ago.
The proposed regularization plan includes several key steps:
- Approval from Bursa Malaysia: The plan is currently under review for regulatory clearance.
- Extraordinary General Meeting (EGM): Pending Bursa Malaysia’s approval, an EGM will be held to secure shareholder support.
- High Court of Malaya Approval: Once shareholders endorse the plan, it will be submitted to the High Court for confirmation.
- PN17 Upliftment: Upon completing these steps, Capital A will officially exit PN17 status, concluding its financial restructuring.
The plan also includes the disposal of aviation-related assets to streamline operations and focus on long-term resilience.
Capital A remains committed to regulatory compliance and mitigating risks such as market competition and operational disruptions. With the submission of the plan, the Group is confident in its ability to execute the strategy effectively, positioning itself for a robust and sustainable future.