KUALA LUMPUR (Jan 19): Capital A Bhd now has up till June 30, 2024 to submit its proposal to regularise its Practice Note 17 (PN17) condition after getting Bursa Malaysia's approval for another six-month extension - its fourth extension in a row.

The group, which announced this in a Friday filing, was placed in Bursa's PN17 list of financially-distressed entities in January 2022.

It was initially supposed to submit the plan by Jan 7, 2023, but the deadline was extended thrice - first to July 7, then to Oct 7 and subsequently to Dec 31, 2023.

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Capital A just announced less than two weeks ago that it will be merging its airline businesses with AirAsia X Bhd. The deal would involve Capital A divesting all its short-haul airline businesses to AAX, including Thai AirAsia Co Ltd (TAA), which is held under Capital A's 43%-owned Thai-listed Asia Aviation PCL. AAX owns 49% of TAA.

The merger, coupled with the upcoming listing of Capital A’s brand royalty business and aircraft leasing unit in the US, would help Capital A in lifting its PN17 status, according to Capital A chief executive officer Tan Sri Tony Fernandes at the time.

Capital A's board of directors had approved the merger but negotiations were still ongoing, Fernandes said.

Post-merger, Capital A will be left with four businesses, namely its aviation maintenance business under Asia Digital Engineering Sdn Bhd, super app segment under its 96.19%-owned AirAsia SuperApp Sdn Bhd, logistics business under the 77.56%-owned Teleport Everywhere Pte Ltd and the digital payments business under its 99.56%-owned BigPay Pte Ltd. 

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