Debt-laden Air Seychelles gets financial rescue plan

 

Air Seychelles will go through a restructuring after its rescue plan was accepted by the noteholders and creditors to whom the airline owes 76 million US dollars, Transport Minister Antony Derjacques announced on Thursday.

Under the rescue plan, ground handling will continue and will be improved. Cargo, engineering and other services will also continue, while regional flights will have to be restructured.

The rescue plan involves a 66.66 percent cut in the original debt of 76 million dollars, thereby saving Air Seychelles 50 million dollars.

Air Seychelles will have to sell some of its assets to pay the remaining 27.8 million dollars with the help of the Seychelles government starting March 31 this year.

“Air Seychelles also owes government but we are ready to forgive the debt when we enter the restructuration of Air Seychelles,” said Derjacques.

Established in 1978, Air Seychelles has been battling debts of around 70 million dollars owed to bondholders while the carrier was in partnership with Abu Dhabi’s Etihad Airways.

In August 2021, the bondholders filed a petition to wind up the airline after a standoff over the debt.

Etihad then owned 40 percent of the carrier but sold its stake to the government for one dollar in April last year.