Airasia Loan Rights

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Airasia Loan Rights

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Boon3	Dec 7 2021, 12:45 PM Show posts by this member only \| Post #41
10k Club All Stars 15,942 posts Joined: Jun 2008	... and clearly holders of AA not liking this rights issue...
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rotloi	Dec 7 2021, 11:08 PM Show posts by this member only \| Post #42
Enthusiast Senior Member 879 posts Joined: Oct 2008	Can I do nothing ?? I don't even know what to click on rakuten
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Boon3	Dec 8 2021, 09:10 AM Show posts by this member only \| Post #43
10k Club All Stars 15,942 posts Joined: Jun 2008	QUOTE(rotloi @ Dec 7 2021, 11:08 PM) Can I do nothing ?? I don't even know what to click on rakuten If you do nothing, the AirAsia-LR will be worth nothing. Right now the stock is doing 0.05/01 sen... Selling at 1 sen... will be difficult, given the size of the sell Q ... which means... if wanna sell... have to sell at half sen... well at least you get back something....
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yibaandre	Dec 8 2021, 09:14 AM Show posts by this member only \| Post #44
Casual Junior Member 496 posts Joined: Sep 2008	QUOTE(Boon3 @ Dec 8 2021, 09:10 AM) If you do nothing, the AirAsia-LR will be worth nothing. Right now the stock is doing 0.05/01 sen... Selling at 1 sen... will be difficult, given the size of the sell Q ... which means... if wanna sell... have to sell at half sen... well at least you get back something.... hi , when is the last date to sell ? thanks
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tehoice	Dec 8 2021, 09:16 AM Show posts by this member only \| Post #45
Look at all my stars!! Senior Member 5,529 posts Joined: Oct 2007	QUOTE(Avangelice @ Dec 7 2021, 10:57 AM) LR you are supposed to sell if you don't want to keep it. Mind you the trading window is very short. You don't want to trade, you can sub rcuids. The worst you can do is don't do anything at all better sell it for starbucks la if you dun intend to pour in more money. otherwise it is worthless....
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tehoice	Dec 8 2021, 09:21 AM Show posts by this member only \| Post #46
Look at all my stars!! Senior Member 5,529 posts Joined: Oct 2007	QUOTE(yibaandre @ Dec 7 2021, 12:04 PM) at the tricor website , they have "No. of Rights Securities to Subscribe" and No. of Excess Securities to Apply" which box do I key in the unit to subscribe ? thanks no. of rights securities to subscribe refers to the number that you wish to subscribe up to the full "entitlement" given to you. no. of excess securities to apply refers to the number that you wish to subscribe over and above the "entitlement" given to you, means extra.
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tangtang22	Dec 8 2021, 10:46 AM Show posts by this member only \| Post #47
Getting Started Junior Member 213 posts Joined: Feb 2008	QUOTE(Boon3 @ Dec 3 2021, 09:23 AM) slightly off .... as it relates more to AAX but.... it's a good read. https://www.msn.com/en-my/money/topstories/...=BingNewsSearch as one can see... the main issue was AirBus/Rolls-Royce and the lessors... that's the bulk of AAX debts.... okay Covid was one thing but it doesn't help when.... AirAsia went on a insane buying spree ( and yeah ... got that bribery scandal worth US$500 million ) .... look, they placed an order for way too many planes... at the peak, the planes orders totaled more than 100 Billion ringgit.... yeah.. who will bare that responsibility, eh? now AAX cannot pay... the lessor issue... yup... they went on an asset-light strategy ... ie... the sale of their airplanes and then they leaseback those planes... Such strategies always debatable... but what they did with the money is insane... they gave the bulk away as special dividends to its shareholders... leaving them with just bare minimum cash.... and when a Covid came.... die lor... minimum cash at hand .... lots of debts .... lease obligations... and no sale.... ahem..... surely someone needs to be responsible, yes? and then you see the proposed usage of the rights money.... where does it go? the bulk of it goes to... settling the fuel hedges and the paying back leases.... both again .... AA own mismanagement... THE hedging..... at the peak... b4 Covid... the hedging were insane. Yes... in a normal business school, they will teach that hedging is good for business... YES indeed... but like in most cases, abuses happen... companies will get greedy... and attempts to over hedge ... in an attempt to WIN money from their hedges... AA lost millions before with their hedges b4 and now it has happened again.... and this is the problem with the company ..... mismanagement. Covid? Only exposed them. I help u summarise, AA last time confident, so start to buy a lot of planes, then rent the planes to its own compannies within the Group. But core earnings from its flying business was still low. Resulting in AA showing high growth n earnings when the core business is not growing tat fast. During tat time, everyone happpy, bankers get to do IPO, the AA group show nice profits, shareholderrs happy cos AA share price went up. Not forgetting that it was due to accounting treatment rather than true business growth that make everyone happy, now the down time takes all the 'happy happy' time away edi..
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Boon3	Dec 8 2021, 11:30 AM Show posts by this member only \| Post #48
10k Club All Stars 15,942 posts Joined: Jun 2008	QUOTE(tangtang22 @ Dec 8 2021, 10:46 AM) I help u summarise, AA last time confident, so start to buy a lot of planes, then rent the planes to its own compannies within the Group. But core earnings from its flying business was still low. Resulting in AA showing high growth n earnings when the core business is not growing tat fast. During tat time, everyone happpy, bankers get to do IPO, the AA group show nice profits, shareholderrs happy cos AA share price went up. Not forgetting that it was due to accounting treatment rather than true business growth that make everyone happy, now the down time takes all the 'happy happy' time away edi.. Sorry I would not use the word 'confident'. I would consider it as reckless. But if wanna a summary... post post #997 otherwise you can read the detailed summary inside... » Click to show Spoiler - click again to hide... « Tracing how AirAsia got where it is today.... 1. I recall that record breaking deal with AirBus... (google search boleh!) https://www.bbc.com/news/business-13884433 That happened on June 2011. QUOTE Malaysia's low-cost carrier AirAsia is buying 200 of the A320neo jets, in a deal worth about $18bn (£11bn). and this statement... QUOTE Altogether, AirAsia has now placed firm orders for 375 aircraft from the A320 family, with 89 already in service. So AA had an order of 175 planes. AirBus supplied 89. So company has a backorder of planes not yet supplied 86 planes (worth 19 billion) but it goes on a record buying spree of 200 new planes worth 58 Billion ringgit (based on exchange rate then)(If this is not excessive, what is?) 2. I then checked on the QR report before June 2011. https://www.malaysiastock.biz/GetReport.asp...t_1Q%202011.pdf Cash balances then 1.8 Billion... Total debts then 7.8 Billion! (from page 27. Previous debt the previous year same period is 7.1 Billion. Ballooning debt issue!) Capital commitment to buy those 86 planes remaining is 19 billion. 3. I remember AirAsia before this, had problems taking delivery of new planes. They had to asked AirBus to defer delivery of new planes. (go search 'Airasia defer plane delivery) https://www.thestar.com.my/business/busines...partly-deferred QUOTE AirAsia became the largest customer of the Airbus A320-200 in December 2007 after it placed a firm order for a total of 175 aircraft, with an option for 50 more. Deliveries are expected to run until 2014. For 2010 and 2011, the airline is slated to take delivery of 24 aircraft each year. Now putting the pieces together.... AirAsia went on a plane buying spree. Ignoring the fact that it's core cash flow balance had always be weak. In 2007, buy 175 new planes.... In 2009... choking already... no money... (2009 account showed 700 million in cash and over 7 biillion in loans. How to complete delivery for 19 billion worth of new planes?) So it had to ask AirBus to defer delivery (which is a good thing to do) By 2011.. cash balance did improved to 1.8 billion but debts remain high at 7.8 Billion. But in 2011... it went bonkers and ordered another 58 billion new planes (source of problem? Overbuying of new planes... exploding debts?) But this is where the damning thing is... as we now learned.... AirBus USD50 million bribery scandal with AirAsia happened in 2012!!!! The year AFTER AirAsia made the insane 58 billion new plane order!!! In 2015.. the news of the massive Sale and leaseback of planes started.... https://www.todayonline.com/business/airasi...lise-operations In Nov 2016. Cash balances 1.5 Billion. Total debts 10.3 Billion. Plane backorder is now worth 91 billion! https://www.malaysiastock.biz/GetReport.asp...32016_24Nov.pdf In Jan 2017. Completes 1 billion special special ownself share placement to boss 1 and boss 2.. https://www.theedgemarkets.com/article/aira...-shareholders-0 In March 2018. The sale and lease back started.... https://www.reuters.com/article/us-airasia-...t-idUSKCN1GD3VP In 2018 AirAsia started to pay huge chunk of dividends. Note how the company, which was weak financially, started paying interim dividends in 2017, right after that special special ownself share placement to boss 1 and boss 2. the numbers and the dates are all there........ And here we are ... 2020.... company is asking for bailout? ( Isn't it crystal clear the company management farked up?) It was choking in debts, it had to the sale and leaseback of planes to ease the debt. But instead of prudently handling the money, AirAsia went on a frenzy and started throwing money back to its shareholders! So assume AA gets the 2 billion it is asking for.... okay.... no problem... but we have to address the issue of what next? Why? The core fundamental weakness of the company will still remain... which at is... the company simply has way too many planes on back order. Cos once this virus blows over and AirAsia somehow survive, AirAsia will soon have to start take delivery of new planes.... which means....ahem.... new financing!!! which will also means.... either the leasing amount, which as of today, is at 12 Billion, will balloon much higher... or else.... the company will have to take on new debts. Remember backorder of new planes is over 110 billion!!!! and then we have the issue of their aggressive hedging... in 2009 kena 640 million in hedges... and now 2020, will total hedging losses runs over a billion? and then in future? How? Can we be assured that in the future, AirAsia would not be hit with another multi million dollar hedging losses once more? Remember the recent interview... "Right now, we’re trading cash flow positive if you take out the leasing and some fuel hedging that we thought we did a good hedge." where he stubbornly reckons he did a good job! And the thing about the rights issue.... if AirAsia refuses to do one... clearly it means the boss 1 and boss 2 is refusing to put in own money when the company is in dire straits...
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Cubalagi	Dec 8 2021, 11:39 AM Show posts by this member only \| IPv6 \| Post #49
Look at all my stars!! Senior Member 4,503 posts Joined: Mar 2014	QUOTE(yibaandre @ Dec 8 2021, 09:14 AM) hi , when is the last date to sell ? thanks Should be this Friday.
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rotloi	Dec 8 2021, 12:27 PM Show posts by this member only \| Post #50
Enthusiast Senior Member 879 posts Joined: Oct 2008	I did not even subscribe anything then it become loan right ???
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Boon3	Dec 8 2021, 01:19 PM Show posts by this member only \| Post #51
10k Club All Stars 15,942 posts Joined: Jun 2008	QUOTE(rotloi @ Dec 8 2021, 12:27 PM) I did not even subscribe anything then it become loan right ??? Firstly... AA is in a really, really bad condition with liabilities more than its assets. So it needs a bailout/rescue package... The loan stock offering is one such rescue package. (AA did a share placement earlier) The loan stock offering. AA is asking folks to buy this loan stock. In return, it's giving a 8% payment on the loan stock + its giving a free warrant as a sweetener. To be entitled to this offering shareholders are given rights to subscribe to the loan stock. IT IS FREE, so if you own AA shares, you are given free RIGHTS. Now this RIGHTS is tradeable. It is an option for the shareholder. If they believe in the company, all they need to do is to subscribe to those loan stocks. Now if don't believe in this rescue package, they have the option to sell the RIGHTS (the rights now is trading at a miserable 0.05/0.1 sen) before the rights cease trading. Once the rights cease trading, the rights shares becomes NOTHING. (yup, 0.05 sen is still better than 0!!!) get a better picture now? This post has been edited by Boon3: Dec 8 2021, 01:20 PM
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ceras	Dec 8 2021, 02:02 PM Show posts by this member only \| IPv6 \| Post #52
On my way Junior Member 649 posts Joined: Jan 2011	Nowadays I would even hesitate to order anything from AA Food. You pay first , get your food later. Those same steps turned many customers into creditors and getting back only 0.05% of their money. Trouble is, you don't know when this will hit you next, so you are always playing a poker game with your transactions with AA.
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cherroy	Dec 8 2021, 03:57 PM Show posts by this member only \| Post #53
20k VIP Club Staff 25,802 posts Joined: Jan 2003 From: Penang	QUOTE(rotloi @ Dec 8 2021, 12:27 PM) I did not even subscribe anything then it become loan right ??? The -LR is given to you free if you are existing shareholder. The -LR enable you to buy the RCUIDS at RM0.75 and a free warrant for every 2 RCUIDS subscribed. Now your option : 1. Sell the -LR to the market (currently at RM0.005/0.01), get some money. 2. Using the -LR to subscribed the RCUIDS aka pay the RM0.75 and you will have the RCUIDS and a free warrant for every 2 RCUIDS subscribed which will be listed later on. 3. Do nothing. The -LR expired and ceased trading the in the market.
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kswee	Dec 9 2021, 04:08 PM Show posts by this member only \| IPv6 \| Post #54
On my way Junior Member 577 posts Joined: May 2012	Left 32 million LR on the market. Tomorrow last day trading.
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genesic	Dec 9 2021, 06:57 PM Show posts by this member only \| Post #55
Enthusiast Junior Member 822 posts Joined: Apr 2006	QUOTE(cherroy @ Dec 8 2021, 04:57 PM) The -LR is given to you free if you are existing shareholder. The -LR enable you to buy the RCUIDS at RM0.75 and a free warrant for every 2 RCUIDS subscribed. Now your option : 1. Sell the -LR to the market (currently at RM0.005/0.01), get some money. 2. Using the -LR to subscribed the RCUIDS aka pay the RM0.75 and you will have the RCUIDS and a free warrant for every 2 RCUIDS subscribed which will be listed later on. 3. Do nothing. The -LR expired and ceased trading the in the market. option 3 is absolutely no go, if go for option3 might as well sell it at option 1, for a decent meal and no needed to worries on the RCUIDS. 10/12/2021 (Friday) is the last trading day
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MasBoleh!	Dec 10 2021, 06:00 AM Show posts by this member only \| Post #56
Look at all my stars!! Senior Member 3,599 posts Joined: Jun 2009 From: MYBoleh.NET	QUOTE(kswee @ Dec 9 2021, 04:08 PM) Left 32 million LR on the market. Tomorrow last day trading. If I wanna subscribe instead of selling off the LR, how do I do it in Rakuten? Go to Buy, insert AirAsia LR and buy the amount based on the LR amount I have?
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kswee	Dec 10 2021, 08:14 AM Show posts by this member only \| IPv6 \| Post #57
On my way Junior Member 577 posts Joined: May 2012	QUOTE(MasBoleh! @ Dec 10 2021, 07:00 AM) If I wanna subscribe instead of selling off the LR, how do I do it in Rakuten? Go to Buy, insert AirAsia LR and buy the amount based on the LR amount I have? If you currently hold the LR Go to my account > Corporate action subscription Then subscribe + payment.
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MasBoleh!	Dec 10 2021, 01:53 PM Show posts by this member only \| Post #58
Look at all my stars!! Senior Member 3,599 posts Joined: Jun 2009 From: MYBoleh.NET	QUOTE(kswee @ Dec 10 2021, 08:14 AM) If you currently hold the LR Go to my account > Corporate action subscription Then subscribe + payment. Don’t see any subscribe button. Attached thumbnail(s)
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kswee	Dec 10 2021, 01:54 PM Show posts by this member only \| IPv6 \| Post #59
On my way Junior Member 577 posts Joined: May 2012	QUOTE(MasBoleh! @ Dec 10 2021, 02:53 PM) Don’t see any subscribe button. Use website.
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spreeeee	Dec 10 2021, 02:38 PM Show posts by this member only \| Post #60
♠ . ♥ . ♣ . ♦ Senior Member 3,812 posts Joined: Apr 2009 From: West Malaysia	totally noob on this. just got the huge envelope today, what can i do with the pink form? not many shares with aa though.. jz for fun when bought that time.. currently stated number of rcuid allocated = 166, and warrants = 83.. amount payable 124.50
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