Holders of about $ 70 million in bonds with issues issued on behalf of Air Seychelles have filed a petition for the liquidation of the African airline due to unpaid debts.
The measure is the latest effort by creditors to recover more than $ 1.2 billion owed by Etihad Airways and its part-time airlines, such as Air Seychelles. At the time, Etihad owned 40% of Air Seychelles and was in a consortium with Gulf and other carriers that borrowed the money through EA Partners.
Air Seychelles declined to comment.
"The Shareholders' Committee (on behalf of EA Partners) has filed a petition dated 19 August 2021 for the liquidation of Air Seychelles. ". The petition was also sent to the airline.
When the COVID-19 pandemic hit last year, Air Seychelles tried to pay off its $ 71.5 million debt to EA Partners and began restructuring the company. At the same time, talks with a credit committee began in July. However, Air Seychelles did not pay more than $ 20 million in total debt. Creditors said they are still open to working with the government and the airline's sole shareholders to reach a solution.