After having implemented its renationalisation plan, the Seychellois State, personally involved in the process of rescuing Air Seychelles, is now aiming for a total recovery of the company.
This is after the national company Air Seychelles, formally withdrew from the judicial administration which was imposed on it in October 2021 because of its debt situation.
Transport Minister Antony Derjacques has indicated that the Board of Directors is back to pilot the next steps.
“Air Seychelles’ rescue plan was presented to the court, and accepted on November 7, 2022. A day later, the board signed a resolution that it will carry out this plan,” he said . .
According to the rescue plan, the Seychelles Civil Aviation Authority (SCAA) will create a new company which will own all the assets of the ground handling operations, so that in the future, the difficulties that Air Seychelles have less impact.
The receivership had suspended the carrier’s expansion plan.
It had been proposed as an option when the creditors had filed a request to liquidate the company, in order to obtain reimbursement of their debts.
As a member of Etihad equity Alliance, Air Seychelles was a party to a bond issued in 2012 with other member airlines accepting responsibility to pay off before the bond expired in 2021.
The airline contracted large debts, that was blamed squarely on former 40% equity partner, Etihad Airways.
Its debts to the Emirati carrier were estimated at 72.3 million USD, but it obtained a 79% reduction following negotiations, according to the Secretary of State at the Ministry of Finance, Patrick Payet.