KUALA LAMPUR (MALAYSIA) – Shares in Malaysia’s AirAsia Group Bhd were put on halt on Wednesday after its auditor said material uncertainties prevailed on the budget carrier’s ability to continue as a going concern.
Ernst & Young PLT said the financial statements were made on a going concern basis, depending upon a recovery from the COVID-19 pandemic and the success of fundraising efforts. It was addressed, in an unqualified audit opinion on the airline’s earnings results for 2019 issued late on Tuesday,.
AirAsia on Monday posted a 803.3 million ringgit ($188 million) loss for the three months ending March 31, its biggest first-quarter loss since its listing in November 2004.
The company said last month it was assessing proposals for raising capital to boost its equity base and liquidity.
Affin Hwang Capital analyst Isaac Chow wrote in a note to clients on Tuesday, company management has guided that an equity raising via a placement or rights issue looks imminent.
AirAsia representatives did not immediately respond to a request for comment.
AirAsia said on Monday that deliberations were ongoing for joint ventures and collaborations that might result in additional third party investments in specific segments of the group’s business.
The trading halt is due to be eased from 2.30 pm local time (0630 GMT), a release to the exchange said.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.