AirAsia X (AAX) creditors have agreed to a restructuring that will pay just 0.5 percent of the debt owed and end its existing contracts, the long-haul low-cost airline said on Friday.

The airline has also reached a deal with its largest creditor, Airbus to reduce a multi-billion dollar order for 78 A330neo widebody planes and 30 A321XLR narrowbodies. AAX had been Airbus' biggest customer for the A330neo.

AAX now plans to take...