JAKARTA (TheInsiderStories) — Amid the condition of adverse equity, PT AirAsia Indonesia Tbk (IDX: CMPP), through its subsidiary PT Indonesia AirAsia, issued US$80 million perpetual securities to its affiliated Malaysian AirAsia Berhad. The conditional perpetual security purchase agreement was signed at the end of 2018.
“The negative equity will keep continued if company doesn’t obtain fresh funding soon. Moreover, there’s warning letter to soon pay some vendors such as PT Pertamina and PT Angkasa Pura II,” said Director of AirAsia Indonesia, Dinesh Kumar on the official statement released today (01/03).
He continued, the perpetual security will be issued in three stages, $30 million respectively on Dec. 31, 2018 and Jan. 31, 2019. Then $20 million on Feb. 28, 2019, for the last stage.
The interest rate determined for the perpetual securities is 2 percent a year. Afterwards, company must pay 12 percent interest, consists of 8 percent distribution tariff and 5 percent step-up margin, for 7 years maturity.
The funding is expected to shift company’s equity positive and fulfil Transportation Ministry requirement. In September 2018, AirAsia’s equity is Rp598.23 billion negative due to the increasing of accumulated losses at around Rp6 trillion. Therefore, Indonesia Stock Exchange gave special notation “CMPP.E” stated the negative equity listed company.
Moreover, with negative equity, AirAsia Indonesia holds Rp4 trillion liability. Kumar said that if AirAsia does not soon pay its obligation to several vendors, it will impact the flight carrier’ operational, business, and performance materially and significantly.
As stated in 2018’s third quarter financial report, AirAsia has Rp75 billion bank loan, Rp635.81 billion finance lease, and Rp188.57 billion accrued expenses matured in a year.
The financial gain is also not supporting. AirAsia Indonesia booked Rp635.3 billion loss in September 2018, swelled by 52 percent from the same period previous year. Meanwhile, its revenue was stagnant at Rp2.9 trillion.
AirAsia Berhad owns AirAsia Indonesia shares through AirAsia Investment Ltd. The Malaysia-based AirAsia Investment Ltd. holds 49.25 percent shares of AirAsia Indonesia, while 49.66 percent owned by PT Fersindo Nusaperkasa.
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