Malaysia’s AirAsia X Bhd, the long-haul arm of AirAsia Group Bhd, said it wanted to restructure $15.3 billion of debt and slash its share capital by 90 per cent to continue as a going concern.

Hard hit by the coronavirus pandemic as closed borders have grounded most of its planes, the budget airline said it had severe liquidity constraints and, with no return to normalcy in sight, added, “Imminent default of contractual commitments will precipitate a potential liquidation.” Its statement late on Tuesday came just days after Malaysia Airlines, the other major carrier, said it was very low on cash and had reached out to lessors, creditors and suppliers for urgent restructuring.