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AirAsia Group Bhd.’s long-haul arm has offered to pay creditors just 0.5% of more than $8 billion of the total debt they are owed. The airline said it is the only way to avoid liquidation and that the subsequent restructuring will allow it to become profitable again.

As Bloomberg reports, “To avoid a liquidation and to allow the airline to fly again, the only option is for AAX to undertake the proposed debt restructuring, proposed corporate restructuring and proposed fundraising and update its business model to survive and thrive in the long term,” the airline said.

The 0.5% payment will be given out of the airline’s operating cash flow one year after its restructuring is complete. The airline also claimed that if it were able to achieve earnings before interest, tax, lease rentals, restructuring costs, and depreciation of more than $72 million in the years of 2023 – 2026, 20% of that would be paid to its creditors – except Airbus.