KUALA LUMPUR (June 15): Capital A Bhd is currently carrying out an interim financial review as part of the evaluation of its Practice Note 17 (PN17) status regularisation plan.

The group said, in a filing with Bursa Malaysia on Thursday (June 15), the interim financial review is part of the regularisation plan prior to any regulatory submission.

“The company will make an immediate announcement once the plan has been finalised,” it added.

Both Capital A and sister company AirAsia X Bhd (AAX) are in the midst of preparing regularisation plans to exit their respective PN17 status.

Capital A's submission deadline is July 7 this year, while the deadline for AAX is July 28. On May 9, AAX was granted an additional three-month extension to submit its regularisation plan.

The regularisation plan is crucial as it is supposed to lift not just AAX, but also Capital A out of PN17 status. The regularisation plan involves Capital A injecting its aviation business into AAX via an issuance of shares.

Capital A fell into PN17 status on Jan 14, 2022, while AAX did so on Oct 27, 2021, after accumulating Covid-19 pandemic-led losses, which resulted in negative shareholders' equity for both companies.

At the time of writing on Thursday, Capital A shares were up 0.63% or half a sen at 80 sen, valuing the company at RM3.3 billion, while AAX shares were up 0.54% or one sen at RM1.86, giving it a market capitalisation RM771.6 million.