Latest news with #RCUIDS
New Straits Times
08-05-2025
- Business
- New Straits Times
Capital A gets green light for RM6bil capital reduction
KUALA LUMPUR: Capital A Bhd has received the green light for its proposed regularisation plan, which includes a capital reduction of up to RM6 billion. This follows unanimous approval by shareholders and holders of redeemable convertible unsecured Islamic debt securities (RCUIDS) at the company's extraordinary general meeting (EGM) held today. Capital A said the capital reduction will help improve its financial position by clearing accumulated losses from its balance sheet, resulting in a more transparent and stable financial outlook. "This represents achievement of critical milestones in Capital A's proposed regularisation plan, designed to facilitate the company's exit from practice note 17 (PN17) status and reinforce its long-term financial resilience," it said in a statement. According to Capital A, following the approvals obtained, it will move forward with seeking High Court confirmation for the capital reduction, which will take place after the entitlement date for the proposed disposal is announced. Its chief executive officer Tony Fernandes said that with the backing of shareholders and RCUIDS holders for the capital reduction, the company is making decisive moves to complete its turnaround and exit PN17 status. "We've been through tough times, but we've built powerful businesses that are now positioned for growth, and these exercises are critical to unlocking that next chapter," he said.
BusinessToday
02-05-2025
- Business
- BusinessToday
Capital A's Auditors Flag Material Uncertainty Over Going Concern
Capital A Berhad has announced that its external auditors, Ernst & Young have issued an unqualified audit opinion on the company's audited consolidated financial statements for the financial year ended 31 December 2024. However, this opinion includes a 'material uncertainty related to going concern' paragraph. This disclosure, made pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, highlights significant doubt regarding the Group's and the Company's ability to continue as a going concern. The material uncertainty stems from the fact that, as of the date of the audit report, key milestones related to the company's Proposed Disposals remain incomplete. These include obtaining necessary approvals from government entities, financiers/lenders, and third parties for both Capital A and AirAsia X Berhad (AAX). Additionally, AAX has yet to raise RM1.0 billion as part of these disposals. Capital A had previously announced a Proposed Regularisation Plan on 24 October 2024, involving a proposed reduction of its issued share capital of up to RM6.0 billion. This plan received approval from Bursa Securities on 7 March 2025. A circular to shareholders and notice to holders of redeemable convertible unsecured Islamic debt securities (RCUIDS) concerning the plan was issued on 15 April 2025. Extraordinary general meetings to seek shareholder and RCUIDS holder approval are scheduled for 7 May 2025. The company stated that the material uncertainty highlighted by the auditors is linked to the ongoing implementation of both the Proposed Disposals and the Proposed Regularisation Plan. Capital A anticipates that the concerns leading to the 'material uncertainty related to going concern' paragraph will be resolved upon the fulfillment of the remaining conditions precedent for the Proposed Disposals, which are expected to be completed by the second quarter of 2025, barring any unforeseen circumstances. Related
