Malaysia-based Capital A Berhad has on Monday announced the submission of its proposed regularization plan to Malaysia stock exchange, marking a pivotal step in its journey to exit the Practice Note 17 (PN17) status.

This milestone represents Capital A’s achievement in strengthening its financial position and reaffirms its commitment to driving long term growth from here onwards, the firm said in a statement.

“It has been a long time coming — we are beyond thrilled to take this momentous step towards uplifting our PN17 status and paving the way for a brighter future,” said Tony Fernandes, Chief Executive Officer of Capital A.

According to him, the regularization plan, which includes a capital reduction of up to MYR 6 billion ($1.34 billion), is designed to strengthen the firm’s balance sheet by eliminating the losses incurred during the Covid pandemic, and reflect the true value of its underlying assets in Capital A.

“Not many companies successfully exit PN17, and those that do often take many years to achieve it. What makes this milestone even more remarkable is that we have reached it while navigating the unprecedented challenges brought on by Covid,

“Once the plan is approved, Capital A will follow AirAsia X’s success in exiting PN17 almost a year ago. This will stand as one of the proudest moments of my career—a testament to the resilience and determination of our team,” he said.

With all approvals in place, he is confident in executing the firm’s strategy to deliver sustainable growth and long-term value, building a stronger and more resilient Capital A.

Following the submission of the plan to Bursa Malaysia for approval, the remaining steps including the approval from Bursa Malaysia committed by the group to complete.

Besides, an extraordinary general meeting will be convened following Bursa Malaysia’s approval to seek shareholder endorsement.

Upon shareholder approval, the plan will also be submitted to the High Court of Malaya for confirmation.

The completion of these steps will enable the group to exit PN17 status, marking the successful conclusion of its financial regularization efforts.

The proposed PN17 plan is subject to the completion of the disposal of aviation.

Capital A remains committed to regulatory compliance and will focus on mitigating risks, including market competition and operational disruptions.

The group said it is confident in its strategic direction and its ability to execute the regularization plan effectively, setting the stage for a stronger and more resilient future.

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