(Seychelles News Agency) - A petition filed in August last year by the Apex Trustees Bondholders to recuperate investment made in Air Seychelles has been withdrawn, the national airline said on Tuesday.

Air Seychelles said that the petition was withdrawn after the airline was able to provide the settlement funds of approximately $28m in escrow, which means being held by a third party until all transactions are fulfilled.  

The agreement for Air Seychelles to pay off only $27.8 million out of the $76 million initial debt owed to bondholders as part of the airline's rescue plan was made between the airline's administrators and its creditors.

In October last year, Air Seychelles appointed two administrators – Bernard Pool and Suketu Patel – to initiate the airline's reorganisation process. This followed a petition filed by the Apex Trustees Bondholders on August 19, 2021, for the winding up of Air Seychelles to recuperate their investment made in the airline.

The airline said that "the withdrawal of the winding up petition is the first step toward the airline's exit from the company reorganisation process." 

Air Seychelles added further that the outlook remains very positive as all of its 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," said the airline.

Air Seychelles, the national airline of the 115-island archipelago in the western Indian Ocean, was established in 1978 and began long-haul service in 1983. 

The airline offers international flights to Johannesburg, Mauritius, Mumbai and Tel Aviv as well as charter services on demand.