Struggling AirAsia X is now officially classed as a financially distressed firm.
It now faces the possibility of being delisted from the Bursa Malaysia stock exchange.
Auditor Ernst & Young issued an advisory citing ‘significant doubt’ about its future as a going concern.
"The company is taking the necessary steps to address its Practice Note 17 (financially distressed) status," AirAsia X said.
AirAsia X has a year to rejuvenate its finances, or it will be delisted from Bursa Malaysia.
Its restructuring plan hinges on a recent offer to pay creditors just 0.5 per cent of the estimated USD8 billion total debt owed to creditors.
It also proposed terminating all existing contracts.
It has already triggered defaults for various contracts
