Air Seychelles to be Restructured after entering Administration

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Air Seychelles has entered into a form of administration with the aim rescuing the company and avoiding possible liquidation. According to Ch-aviation, Bernard Pool and Suketu Patel have been appointed as administrators who will now embark on reorganizing the company

With the government having entered an arrangement with the IMF that in effect blocks any bailouts for the airline, the only route left for the creditors to potentially get a decent return on investment is reorganization

The government has put the blame squarely on former 40% equity partner, Etihad Airways according to the statement reported by Ch

Air Seychelles has faced significant challenges over the past 18 months arising from the COVID pandemic and its impact on international travel and tourism. However, Air Seychelles’ financial difficulties arise mainly due to significant debt that was incurred during the stewardship of the airline by Etihad Airways, which was previously a 40% shareholder in the company. This debt comprises amounts that were owed directly to Etihad and also loans of almost USD72 million that were funded by the capital markets and are now controlled by bondholders of EA Partners,” said the Joint statement from the airline and government

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