“AirAsia Group” Posts 17% Decline after Being Halted by KLSE on a “Going Concern”

The share price of Malaysia’s AirAsia Group (AIRASIA) plunged 17% on Wednesday after its auditor indicated material uncertainties, casting doubt on the company’s ability to process as a going concern.

 

Ernst & Young said AIRASIA’s 2019 financial statements were prepared on a going concern basis, which is dependent upon a recovery from the COVID-19 pandemic and the success of fundraising efforts.

Moreover, Ernst & Young also stated that AIRASIA’s current liabilities already exceeded its current assets by RM1.84 billion or approximately $430 million at the end of 2019, which was the year where the company posted a RM283 million net loss and that was before the coronavirus outbreak.