forget about PN17 companies such as Serba Dynamic and others which are basically gone case.

Tony is right to delay until this time round when the air industry is truly in the position to be structured . Given thhe explosive recent QRs of both AXX and Cap A , they can be used as a constructive basis for negotiation with the creditors for restructuring. It is believed that the Creditors , lenders and lessors will find it hard to reject any restructuring plans,

Think about it, the creditors , lenders and lessors are not silly. They look at the long term . Why should they kill the goose that lays golden eggs? They stand to get nothing back if they put the companies into liquidation. If they give both companies a lifeline, they are still able to turn around and generate substantial income and earning so why do they want to kill them off ? More and more passengers are flying and airports are busier than ever which are the harbingers of the business as usual.

well, if both companies can make a combined earning of RM 400 m ( min) in total per quarter.One year would be RM 1.6b. With that, it would take 11- 12 years to settle all the whopping debts of RM 17.8b . I think it is a tremendous effort too good to be true.

I reiterate that AAX and Cap A are in PN17 status through no fault of the management of Tony but the unforeseen prolonged pandemic worldwide beyond the control of the management of Tony. Now then that the pandemic is over ,there is no reason why they cant not take off in view of the overwhelming demand to fly again. Air transportation is a necessity to cross borders and there is no reason why it will be sunset like glove.

The prospects of Air Industrials are bright and there is no reason why AAX and Cap A can not be restored. That s
why i say AAX and Cap A are of exception as compared to other PN 17 companies of the present and in the past

Some guys like to invest in troubled companies such as PN17 . They just hope ( but i call it gamble ) that the companies would be restored even 1 out of 10 is restored, their investment has already been recouped. Unfortunately and most cases , their plans are backfired. However, such can never be taken as a " stereotype" . Cap A could be of exception

Tony has a daunting task ahead of him to convince the shareholders of AAX to salvage Cap A. We will see if the AXX shareholders are behind him or not. If not, Tony will use his last weapon ie to resign and the existing shareholders of AAX would stand to lose more.

The choice is to back Tony or not remains to be seen very soon

If he does not save Cap A , then it is a reflection of his bad management . When a sister company ( Cap A ) is in trouble even though through no fault of him ( the culprit was due to pandemic,not his management ) , he should make an effort to save it rather than to abandon it .

Judging from Tony's character, he would salvage Cap A by hook or by crook. It is believed that the creditors ,lessors ,lenders etc would not be harsh to him but lend him a hand as they have fatih in the management of Tony .He did it before to turn a " once a debt stricken company" into one of the most successful budget airline " Airsia" .Hence , there is no reason why he could not do it again.

By the way, Tony has once said" In the event of crisis, you will know who your true friends/ associates are ''

Basically, AAX is more healthy but Cap A is in deep shit

For the whopping debt of 17.821billion, it would take about 11-12 years to settle with the combined earnings of RM 400 million per qtr ( RM400m x 4 qtr= 1.6 b per annum) of both companies . WTF

*Capital A Berhad's total debt last quarter was 17.821 billion ( Lease Liabilities of RM 14.91 Billion 

 +Borrowings of RM 2.91 Billion)
*Capital A Berhad's NTA is Negative about -9 billion +++. Technically, Cap A is insolvent.
* How on earth would AAX be audacious to takeover Cap A whether through merger and acquisition?
* Would you bail out a heavily debt stricken company ?

If AAX is required to issue RM 12b worth of new shares, we are talking about issuance of 6.6 b new shares ( RM12b/RM 1.80 assuming this is the fair value) . The share capital of AAX will be ballooned by 6.6 b which is too much for the existing shareholders of AAX to bear. I doubt AAX shareholders would approve

This method is subject to due diligence which takes time and the values of assets are subjective which may face with resistance and resentment from Cap A 's shareholders

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Another likelier scenario:
To exit pn17, net liabilities must disappear. Therefore lenders and creditors of capital A will likely b partially paid and partially converted into equity. Capital A will b worth rm12b but with zero net liabilities. AAX will need to issue 6.66b new shares to acquire aviation biz of capital A. Enlarged shares in issue of aax will b 7.1b units. For rm2b net profits a year, eps will b 28sen a year post regularisation.

This is exactly what I mean ie through assignment of debts to AAX and issuance of share by AAX .
Upon the merger, the debt of Cap A will be eliminated ie absorbed by AAX
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They will have to b paid partially by capital A shareholders via rights issue during regularisation scheme. The remainder says RM6b will b transferred to AAX. If capital A is valued at RM12b minus its net liabilities of RM6b, AAX will have to issue AAX shares worth RM6b to capital A shareholders. AAX then has 0.41b plus 3.3b (=6b/rm1.8 assumed fair price of aax) paid up shares in issue. Post-regularisation, AAX will trade at rm1.8 still but with RM6b net liabilities on aax books.

If the assets of Cap A is negative , then the shareholders of AAX should be given more shares upon merger.

Lets put it this way, imagining I give you RM 5 but I stand to gain RM 50 in return. Dont you think it is a good deal?

AAX shareholders stand to gain more upon merger as their net worth is expected to more though they have to pay the price ie to absorb the debts of Cap A. If the cost is weighed by the benefit ( gain) , there is no reason why AAX shareholders should reject the plan.

with the generation of the total average earnings of RM 400 million per quarter from both AAX and capital A , both companies can pay off their combined debts within two years or even faster through merger.

Ok.fair enough. Since the net asset base of Cap A is larger than AAX , AAX shareholders stand to gain upon merger as a result.

Since the debt level in Capital A is higher than that in AAX, it is logical for shareholders of AAX to get more shares than those of Cap A for conversion of assigned debts of Cap A into equity in the process of merger

No goodwill is expected as no acquisition is involve but merger. As long as AXX 's shareholders are given more free shares than those of Cap A , there should be no issue. both shareholders stand to gain through synergy effect.

For the conversion of Assigned debts to equity, AAX's shareholders could be given more shares than those of Cap A since AAX is to absorb the debts of Cap A.

Assigned debts will be converted into equity ballooning the share capital base. Hence , Capital reduction is likely to be exercised in due course.

The debts of the Capital A can be assigned to AAX . In the book of Capital A, the debt is now owing to AAX ( interco balance ) while in the book of AAX, Capital A is shown as a debt ( interco bal) . Basically, both books show intercompany balance ( Debts).

Upon merger, the intercompany balances ( debts) will be cancelled off ( contra) . The AAX and Cap A , need to convert the the assigned debt into equity as a result of which both shareholders( AAX and Cap A ) will be given extra shares. There is no free shares given to Cap A shareholders as mentioned by someone here.

with the generation of the total average earnings of RM 400 million per quarter from both AAX and capital A , both companies can pay off their combined debts within two years or even faster . No matter how they are structured , they can pay off each other debts within their reach. Hence no cause of concern.

how could you average when all your $ has been tied up at 30-35c?

Do you really believe that the share value would be restored in view of the ongoing issues and uncertainties?

Like mtag,a lot of investors are stuck at 68c and it is believed that they kept averaging down to 42c now....still get stuck now with loss of opportunities elsewhere.

No sign of that creep any more?

Given the recent promising QRs of both AAX and CA,the regularisation plan appears to be smooth to be finalised well in time of submission to SC for approval. It is very promising indeed.

It is believed that Eatcoconutcanwin should feel relieved by now and continue to eat coconut but make sure it is free from husk and shell

That fellow will check his candlestick tonite.No need to check , it has been crossed over to bullish and also as a result of oversold position.

I have already reiterated that you can not rely on TA alone to trade shares.. If you rely on TA heavily and become too technical, you will lose your own sense of judgement gradually and become headless chicken

But someone will buy only when the candlestick has turned green.....he is a diehard TA

if eatcoconutcanwin had run like those running chicken heads, he would have been called " eatchickenbacksidecanwin" ?

forget above glove industry , it is a sunset industry . I dont know why they are still fancied.

If you are lucky , you might get a youngnite stand with the pretty air stewardess.

newbie or seasoned?

Your GV stands for what ?
Gender Variant meaning (“not conforming to expected gender roles”)?

uptrend. someone is waiting for the candlestick to turn green... but might be too late...

no more waterfalls , the waterfalls was due to the disposal of PP ( 32 m) and panicky chicken heads ( 26m) during the last 4 days or so

26m shares have been flushed away and 32 m shares have been changed hand in the last 4 days or so.... no more obstacles for the aircraft to thrust now
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Between the short spell of 26/5 to 1/6 , it is observed that there were 580,000 lots ( 58 million shares ) changing hands. The total PP in issue was only 32miliion. Assuming all the PP have exited between the said spells by now , what are you still worried about ? It is believed that difference of 26 m ( 58m-32m ) was due to panicky selling by panicky running chicken heads.

But no use, the aircraft is determined to thrust with its full power, blowing the baffoons away hundred miles....

Some buffoons are preventing the aircraft from flying high with bad agenda....

It will be flying high to the moon soon. Boarding is in the process

Some asxholes are blocking at 1.73 which is futile. It will be preached soon

Yer big gun. thats what i call it as a qualitative factor

yer, his body can be preserved like a fossil underground in the sub-zero Swiss Alps

If you believe in TA, you believe everything. You become the easiest target to be attacked as your move is betrayed by the TA. TA is just one of the quantitative factors which should be used in conjunction with the qualitative factors but sadly , most buggers fail to consider the qualitative factors as they are hard to get by. Those who have both can beat the market. In the absence of both, it is better than none.So your TA is still ok but incomplete meaning it can not be relied upon completely.

The candle of yesterday was cross over which could turn into bullish or further bearish today . But gathered what was mentioned earlier on, there is no reason why it continues to be bearish...

His TA suggests green candle today .....

Between the short spell of 26/5 to 1/6 , it is observed that there were 580,000 lots ( 58 million shares ) changing hands. The total PP in issue was only 32miliion. Assuming all the PP have exited between the said spells by now , what are you still worried about ? It is believed that difference of 26 m ( 58m-32m ) was due to panicky selling by panicky running chicken heads.

PN17 is irrelevant now. The prospects of drawing big income due to the overwhelming demand for flying remain brighter than expected. Both AAX s and Capital A 's regularisation plans have been well-structured in place. Hence, there is no reason why there should be panicky selling.