Creditors seek “fair and equitable settlement” with Air Seychelles |01 September 2021
Following notices published on the Regulatory Information Service of Euronext Dublin by each of EA Partners I.B.V.("EAPI") and EA Partners IIB.V.("EAPII", together with EAPI,"EA Partners") on August 25, 2021 in respect of debts owed by Air Seychelles Limited ("Air Seychelles" or the "Airline") (indirectly) to the EA Partners bondholders, the Noteholder Committee (acting on behalf of the EA Partners bondholders) has confirmed that, the Noteholder Committee (acting through its representative) filed a petition dated August 19, 2021 for the winding-up of Air Seychelles, and on August 24, 2021, such petition was served on, and acknowledged by Air Seychelles.
Since its initial engagement with Air Seychelles in July 2020, the Noteholder Committee has made clear that it is willing to reach a fair and equitable resolution to the airline's debt challenges. To date, there has been no substantive engagement, nor any sense of urgency concerning the Airline's situation, from either Air Seychelles or its sole shareholder, the Government of Seychelles. This is in spite of the fact that a statutory demand in respect of the debts owed by the Airline to the EA Partners bondholders was served on the Airline on April 1, 2021. Therefore, the Noteholder Committee has regretfully concluded that the only viable option that remains available to the Noteholder Committee is to file a petition for the winding-up of Air Seychelles, in order to seek recovery of the debts owed to it and the other EA Partners bondholders.
The Noteholder Committee acknowledges that the airline plays a vital role in Seychelles and that its winding-up would undercut the ability of Seychelles' tourist-driven economy to recover precisely at a time when global vaccination programmes have resulted in the resumption of international travel. The Noteholder Committee has noted the President's recent public commitment to save Air Seychelles and the Noteholder Committee is prepared to work with the Government of Seychelles, as the sole shareholder of the airline, to achieve this, provided that the rights of creditors and their position in the capital structure is respected, and the Government of Seychelles commits to a fair and equitable settlement with the EA Partners bondholders. However, in the absence of tangible engagement from the airline and the Government of Seychelles, the Noteholder Committee will be forced to proceed with the winding-up of the Airline.
Press release from the Noteholder Committee