The Watershed Meeting of Airmate Ltd is scheduled for September 30, two days after that of Air Mauritius.
The administrators of the company, Sattar Hajee Abdoula and Arvinsingh Gokhool, submitted their report to the creditors of Airmate Ltd this Thursday, September 23. As a reminder, this subsidiary of Air Mauritius is fully owned by the national airline.
The directors propose three options in the report. The creditors have the choice between adopting the Deed of Company Arrangement (DOCA) with a debt restructuring plan, ending the voluntary administration or liquidating the company.
The report argues that the best option for creditors would be to adopt the DOCA, which allows them to recover 50% of the money owed. Indeed, the administrators have stipulated that if the DOCA is accepted, the creditors will receive half of the total amount of their debt, as for every rupee the company owes them, they will receive 50 cents.
However, if the creditors choose to liquidate the company, the report says Airmate has no assets that can be sold for the benefit of the creditors.
The company needs a sum of Rs20 million to be afloat again.
Airmate Ltd has 881 employees, of which 523 are on permanent contracts and the remaining 258 are on fixed-term contracts.
However, the administrators stress that the survival of Airmate Ltd depends totally on the decisions taken by the Watershed Meeting of Air Mauritius on September 28, especially if the creditors accept the rescue plan of the administrators. If not, the company will have to disappear.
