We refer to Capital A’s press release dated 5 October 2021 titled “AirAsia Group Berhad Receives Approval from Danajamin Nasional Berhad for a Club Facility of up to RM500 million under the Danajamin Prihatin Guarantee Scheme.”

Subsequent to the approval by Danajamin Nasional Berhad (“Danajamin”) for the 80% guarantee under the Danajamin Prihatin Guarantee Scheme for the Club Facility, the Board of Directors and Management of Capital A would like to announce that the Company will not be proceeding with the Club Facility because it is unable to accept and/or fulfill certain conditions, inter alia, the following:

(i) “Security: Joint and Several Guarantee from Tan Sri Anthony Francis Fernandes and Datuk Kamarudin bin Meranun.” 

(ii) “Conditions Precedent: AAGB to submit and Bursa Malaysia Securities Berhad (“Bursa Malaysia”) to approve AAGB’s regularisation plan pursuant to Paragraph 8.05 and Paragraph 2.1(a) of Practice Note 17 (“PN17”) of the Main Market Listing Requirements of Bursa Malaysia currently under extension relief period, to remedy AAGB’s consolidated shareholder equity to be above MYR40mil and 25% of share capital (excluding treasury shares) OR AAGB to obtain a time extension to provide the regularisation plan from Bursa Malaysia for the matching tenure of the DPGS Club Facility.”

Capital A is exploring other available debt financing alternatives with acceptable terms suitable to the operations and financing requirements of the Company. 

This announcement is dated 10 March 2022.