Air Seychelles, which entered administration last year, has avoided liquidation now that creditors have withdrawn their petition.
Representatives of the noteholder committee of the bondholders have withdrawn their earlier petition, which called for the financially-troubled carrier to be wound up. Smart Aviation Asia Pacific previously reported on the petition which was filed on 19 August last year, due to the US$71.5 million owed to bondholders.
Air Seychelles says in a statement the petition has been withdrawn on the basis that Air Seychelles has been able to provide the settlement funds of approximately US$28 million in escrow.
The withdrawal of the winding up petition is the first step toward the airline’s exit from the company reorganisation process, it says.
The airline says its outlook is very positive because its core destinations have reopened and it plans to increase frequencies in response to demand. Rising oil prices are a concern, but contingency strategies such as long-term wet leasing will help mitigate potentials spikes, it adds.
Air Seychelles’ website shows it operates five De Havilland Canada Series 400 Twin Otters, and two Airbus A320neo aircraft.
Picture Source: Air Seychelles
Air Seychelles Cuts Debt Through New Rescue Plan (31 January 2022)
Air Seychelles Enters Administration (7 October 2021)
Creditors Petition For Debt-Ridden Air Seychelles To Be Wound Up (27 August 2021)