KUALA LUMPUR: Capital A Bhd has submitted its proposed regularisation plan to Bursa Malaysia Securities Bhd, a step in its journey to exit the Practice Note 17 (PN17) status.
Its chief executive officer Tony Fernandes said the regularisation plan which includes capital reduction of up to RM6 billion, is designed to strengthen its balance sheet by eliminating the losses incurred during the Covid pandemic, and reflect the true value of its underlying assets in the company.
"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," he said in a statement.
Tony described this as one of the proudest moments of his career, highlighting it as a testament to his team's resilience and determination.
"With all approvals in place, we are confident in executing our strategy to deliver sustainable growth and long-term value, building a stronger and more resilient Capital A," he added.
Capital A said after submitting its plan to Bursa Malaysia for approval, the group is committed to completing the remaining steps, including obtaining approval from the exchange, holding an extraordinary general meeting, securing approval from the High Court of Malaya, and achieving PN17 upliftment.
"The proposed PN17 plan is subject to the completion of the disposal of aviation," it said.
Capital A said it remains committed to regulatory compliance and will focus on mitigating risks, including market competition and operational disruptions.