Etihad denies Air Seychelles requesting debt restructuring
Etihad Airways Partners II, a Special Purpose Vehicle (SPV) backed by Etihad Airways, rejected Air Seychelles' offer to reduce the value of its loan to $ 15 million. This expires in June 2021.
The Seychelles carrier, in which Etihad Airways owns 40% of the shares, made the request in July, fearing that without restructuring it will become insolvent. Air Seychelles has defaulted on a debt repayment deadline of August 24.
In September 2015 and May 2016, Etihad via its SVP raised two debts (maturing 5 years) on the international markets for an amount of 700 million and 500 million dollars respectively. The total funds had been split between the UAE carrier, Etihad Airport Services, Air Seychelles, Air Serbia, Air Berlin, Jet Airways and Alitalia. Under the original deal, each company would have to pay its own debt, but the last three have since gone bankrupt.
Discussions are now announced between the government of Victoria and Air Seychelles' creditors to find a way forward.It is unclear whether Etihad Airways is still excited to inject capital into Air Seychelles as it suffers severely from it. - even the effects of the Covid-19 pandemic. The Abu Dhabi-based carrier posted an operating loss of $ 758 million in the first half due to a 38% drop in revenue to $ 1.7 billion.
The Seychelles carrier, in which Etihad Airways owns 40% of the shares, made the request in July, fearing that without restructuring it will become insolvent. Air Seychelles has defaulted on a debt repayment deadline of August 24.
In September 2015 and May 2016, Etihad via its SVP raised two debts (maturing 5 years) on the international markets for an amount of 700 million and 500 million dollars respectively. The total funds had been split between the UAE carrier, Etihad Airport Services, Air Seychelles, Air Serbia, Air Berlin, Jet Airways and Alitalia. Under the original deal, each company would have to pay its own debt, but the last three have since gone bankrupt.
Discussions are now announced between the government of Victoria and Air Seychelles' creditors to find a way forward.It is unclear whether Etihad Airways is still excited to inject capital into Air Seychelles as it suffers severely from it. - even the effects of the Covid-19 pandemic. The Abu Dhabi-based carrier posted an operating loss of $ 758 million in the first half due to a 38% drop in revenue to $ 1.7 billion.
Source: newsaero
