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Malaysia's AirAsia works to regularize finances to shed PN17 tag

Malaysia's AirAsia works to regularize finances to shed PN17 tag

FILE PHOTO: Airasia planes are seen parked at Kuala Lumpur International Airport 2, amid the coronavirus disease (COVID-19) outbreak in Sepang, Malaysia October 6, 2020. REUTERS/Lim Huey Teng

Malaysian budget airline AirAsia Group Bhd said on Friday it was working on a plan to "regularize its financial condition" after being classified as a PN17 firm by Malaysia's stock exchange.

The airline was branded a 'Practice Note 17', or PN17, company by Bursa Malaysia Securities, a tag given to financially distressed firms. PN17 companies may be de-listed by the exchange if they fail to regularize their finances within a set time frame.

AirAsia, which is deep in losses following a plunge in demand due to the pandemic, has had to scramble around to raise funds.

In November, it won shareholder approval for a rights issue to raise 1 billion ringgit ($239.4 million). It also raised 336.5 million ringgit through a share placement in December.

The Malaysian exchange on Thursday dismissed the airline's appeal to extend the relief period from being classified as a PN17 company beyond January 7, sending its shares down nearly 17per cent on Friday.

($1 = 4.1770 ringgit)

(Reporting by Harshita Swaminathan; Editing by Krishna Chandra Eluri)

Source: Reuters

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