Bondholders withdraw winding-up petition filed against Air Seychelles |12 May 2022

The government of Seychelles, the administrators, the board and management of Air Seychelles are pleased to announce that the winding-up petition, which had been filed against Air Seychelles by the representatives of the note holder committee of the bondholders, has been withdrawn by their representatives.

The petition was withdrawn yesterday (May 11, 2022) on the basis that Air Seychelles has been able to provide the settlement funds of approximately US $28 million in escrow, a type of legal holding account for items, which can't be released until predetermined conditions are satisfied.

The winding-up petition was initially filed against Air Seychelles on August 19, 2021.

Air Seychelles entered into company reorganisation on October 4, 2021. Withdrawal of the winding-up petition is the first step toward the airline’s exit from the company reorganisation process.

“This is a great achievement for Air Seychelles as the first major step towards reorganisation of the airline,” said Veronique Laporte, chairperson of the Air Seychelles board.

The outlook remains very positive as all of Air Seychelles’ core destinations have reopened with minimal Covid-related restrictions in place. Frequencies will be added throughout the year as demand dictates. Oil prices remain a challenge for the carrier, but contingency strategies such as the ACMI operation (long-term charter) will help mitigate potential spikes or future Covid-related disruptions and other negative economic impacts.

Press release from Air Seychelles