MATERIAL LITIGATION Claim filed in the High Court of Justice in the Business and Property Courts of England and Wales by BOC Aviation Limited against AirAsia X Berhad and AAX Leasing Two Ltd., an indirect wholly-owned subsidiary of AirAsia X Berhad

AIRASIA X BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
Claim filed in the High Court of Justice in the Business and Property Courts of England and Wales by BOC Aviation Limited against AirAsia X Berhad and AAX Leasing Two Ltd., an indirect wholly-owned subsidiary of AirAsia X Berhad

Pursuant to Paragraph 9.03 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of AirAsia X Berhad (“AAX” or “the Company”) wishes to announce that the Company and AAX Leasing Two Ltd. (“AAX Leasing Two”), an indirect wholly-owned subsidiary of AAX, had on 25 August 2020, received a letter dated 19 August 2020 issued by Morgan, Lewis & Bockius UK LLP (“Morgan Lewis”) enclosing, amongst others, a particulars of claim dated 19 August 2020 (“Particulars of Claim”) filed by Morgan Lewis on behalf of BOC Aviation Limited (“BOCA”) against the Company and AAX Leasing Two in the High Court of Justice in the Business and Property Courts of England and Wales (“said Claim”).

 

For information, BOCA is an aircraft operating leasing company and AAX Leasing Two has leased four (4) aircraft from BOCA pursuant to four (4) individual aircraft lease agreements, all dated 24 November 2014 as novated, amended and restated on 28 December 2018 and as amended and supplemented from time to time, between BOCA and AAX Leasing Two (“Lease Agreements”).

 

In the Particulars of Claim, BOCA claimed that the said Claim is in relation to:

1. the alleged breach of AAX Leasing Two’s obligations under the Lease Agreements; and

2. the alleged breach of AAX’s obligations under four (4) guarantees, all dated 28 December 2018 issued by AAX in favour of BOCA pursuant to the Lease Agreements (“Guarantees”).

 

In connection to the said Claim, BOCA had in the Particulars of Claim claimed for, amongst others, the sum of US$ 22,975,392.17 from the Company and AAX Leasing Two, representing the outstanding amounts due as a debt under the Lease Agreements and the Guarantees.

 

 

Financial and Operational Impact to the Group

 

The financial impact to the Company will be a cash outflow equal to the amount of the claim of US$22,975,392.17.

 

There is no operational impact to the Company.  

 

 

The Steps Taken or Proposed to be Taken by the Company in respect of the said Claim

 

The Board of AAX is currently reviewing the documentations received in respect of the said Claim, and will be seeking legal advice in relation to the said Claim.

 

The Company will make the necessary announcements on further developments of the above matter as and when necessary.

 

 

This announcement is dated 4 September 2020.






Announcement Info

Company Name AIRASIA X BERHAD
Stock Name AAX
Date Announced 04 Sep 2020
Category General Announcement for PLC
Reference Number GA1-04092020-00058