KUALA LUMPUR: Capital A Bhd has reiterated confidence in completing its proposed regularisation and restructuring plan by June 2025, notwithstanding the inclusion of a material uncertainty related to going concern (MUFG) paragraph in its latest audited consolidated financial statement.

The company, which owns budget carrier AirAsia, said in a Friday press statement it retained a "steadfast and positive outlook" and views the paragraph as a procedural outcome tied to timing, and not a reflection of deterioration in its business fundamentals.

"The MUGC paragraph reflects standard audit caution amid pending restructuring steps and is not an indication of operational weakness," said the statement.

CEO Tan Sri Tony Fernandes noted that the auditor, Ernst & Young, draws attention to the timing of the restructuring — particularly the RM1bil placement for AirAsia X - which reflects the scale and significance of the plan, not any weakness in fundamentals.

"We want to assure our shareholders that the inclusion of the MUGC paragraph is a audit requirement when certain milestones remain pending at the date of issuance of audit report — even when they are well on track.

"It does not reflect any concern about the strength of our business."

Fernandes added that meaningful progress is being made across all fronts, and the group remains confident in completing all components of its restructuring plan successfully.

Capital A chief financial officer Mun Hui Teh said discussions with the external auditor suggested the MUGC paragraph will be resolved upon fulfilment of the remaining key conditions precedent

— namely, regulatory clearance and completion of the RM1bil placement for AirAsia X.

"From a financial standpoint, we are seeing strong indicators of recovery. The first quarter of 2025 was particularly encouraging, and with investor confidence solidifying, we are focused on delivering a clean exit from Practice Note 17 (PN17) and positioning Capital A for long-term growth," she added.