SEPANG, Dec 23 — Capital A Berhad has submitted its regularisation plan to Bursa Malaysia this evening after more than a year of scrambling to turn the ailing company around and pare down its staggering debt.

Its chief executive Tan Sri Tony Fernandes told reporters here that the plan is "simple” and is driven mostly by "capital reduction”. He did not elaborate when pressed further.

"With it, I hope that by February or March (next year), we’d have AirAsia Group as a new company and Capital A out of PN17,” he said at a brief press conference held at KLIA Terminal 2 here, where he led a Christmas celebration for one of Capital A’s six companies.

"This is huge. Not that many companies get out of PN17,” he added.

PN17 refers to Practice Note 17, a designation issued by Bursa Malaysia for listed companies that are in financial distress or do not meet specific financial conditions.

Companies under PN17 status are required to submit and implement a regularisation plan within a stipulated timeframe to restore their financial standing and maintain their listing on the exchange.

AirAsia X in April announced the acquisition of Capital A’s aviation business — AirAsia Aviation Group Ltd and AirAsia Bhd — for RM6.8 billion.

Capital A will get RM3 billion worth of AAX shares in exchange, while AAX will assume a RM3.83 billion debt that Capital A owes the aviation business.

Capita A shares rose by 3.9 per cent ahead of today’s submission to 0.98 sen each as trading closed. The company’s share price has gained nearly 20 per cent year-to-date, making its valuation at RM4.22 billion.

Fernandes said the submission of the plan signals a major turnaround for the company that was severely hit by the Covid-19 pandemic. AirAsia was forced to lay off some 2,500 workers as travel lockdowns paralysed its business.

"I’m very proud of my staff. They never gave up. And it’s fantastic for me looking at how many people are at this airport. AirAsia has done an amazing job for Malaysians, for South-east Asians,” he said.

"So many people are flying. So many foreigners here. It’s great that we survived and it’s great that we have a lot of jobs.”

The plan will still need the approval of regulators and shareholders before Capital A can exit its PN17 status.

"It’s a simple plan and it involves capital reduction, so I hope Bursa Malaysia really looks into it favourably,” he said.