Capital A considers divesting Big Pay, Tune Protect stake as it restructures Move Digital to address RM292mil liabilities
KUALA LUMPUR: Capital A Bhd is undertaking a court-supervised scheme of arrangement for its wholly-owned indirect subsidiary Move Digital Sdn Bhd, which could see the divestment of the latter’s stake in Big Pay Pte Ltd, and Tune Protect Group Bhd.
KUALA LUMPUR - Capital A Bhd is set to pursue a court-supervised arrangement for its wholly-owned subsidiary Move Digital, which may involve selling off stakes in Big Pay and Tune Protect. Move Digital is seeking creditor meetings and a three-month halt on creditor actions. The restructuring aims to address historical liabilities, streamline holdings, and eliminate funding for loss-making units.
Capital A's CEO, Tan Sri Tony Fernandes, emphasized the importance of accountability and governance. The primary recovery measures include selling Move Digital's majority stake in Big Pay and seeking a fair market value for its 13.6% share in Tune Protect. Internal group entities, primarily Capital A itself and AirAsia-related companies, are involved as creditors.
The scheme's creditors' claims will be treated as unsecured and settled through a three-year monetization plan. The restructuring will have no significant impact on Capital A's group structure and financials, as Move Digital's losses are already recognized in the group's financial statements. The final execution of the scheme depends on various approvals and validations.
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