They needed more time and they got it. Announced by the end of June, the crucial meeting between the administrators of Air Mauritius (Sattar Hajee Abdoula and Arvindsingh Gokhool) and the creditors of the airline, has been postponed. The discussions should be held no later than January 31, 2022. The creditors have to be patient.
According to a statement published on the website of the Stock Exchange of Mauritius on Tuesday 8 June, the directors have received permission from the Supreme Court for this delay. It is to be noted that during this meeting with the creditors, Sattar Hajee Abdoula and Arvindsingh Gokhool were to present a finalized recovery plan to the creditors. Unfortunately, the document is not ready. “Given the strategic importance of the airline, we are determined to complete this voluntary administration process, and allow decisions to be taken in the interest of the airline and the country,” said Sattar Hajee Abdoula.
He furthermore added: “Our final proposals will largely depend on the financial support that the major donors will be ready to grant to Air Mauritius. Discussions have been initiated and we hope that the necessary arbitrations will be made quickly. ”
But what is surprising is that the two administrators, in a statement, claim that discussions are currently underway regarding the financial means to be deployed and the structural reforms to be implemented. At the same time, they claim that their decisions have allowed Air Mauritius to save more than Rs 1.75 billion annually. And that, in a normal economic context, they would have already handed over the reins of the national airline to its management team.
It is to be noted that Air Mauritius has been placed under voluntary administration since April 2020. The decision was taken by the Board of Directors on 22 April 2020. Sattar Hajee Abdoula and Arvindsingh K. Gokhool, both of Grant Thornton, have been appointed as administrators of the company. This is in accordance with sections 215 and 216 of the Insolvency Act.
This came as a direct consequence of the company’s suspension of operations due to the Covid-19 pandemic. The Board of Directors of Air Mauritius explained that “travel restrictions and border closures in all our markets and the suspension of all international and domestic flights in an unprecedented crisis have led to the complete erosion of the company’s revenues”.
