Thursday 26 August 2021

Creditors file winding up petition for Air Seychelles | Reuters

Creditors file winding up petition for Air Seychelles | Reuters

Holders of around $70 million in troubled bonds issued on behalf of state-owned Air Seychelles have filed a petition to wind up the African airline, they said in a statement, after a standoff over the unpaid debt.

The move is the latest effort by creditors to recover $1.2 billion owed by Abu Dhabi’s Etihad Airways and airlines it partly owned when the debt was issued in 2015 and 2016, such as Air Seychelles.

At the time, Etihad owned 40% of Air Seychelles and it was in a consortium along with the Gulf airline and other carriers that borrowed the money through special purpose vehicle EA Partners.

"The Noteholder Committee (acting on behalf of the EA Partners bondholders) ... filed a petition dated 19 August 2021 for the winding-up of Air Seychelles, and on 24 August 2021, such petition was served on, and acknowledged by, Air Seychelles," the creditors said in a statement on Wednesday.

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