Air Mauritius has issued a communique saying its board of directors met today, April 22, 2020, and decided to place the company under voluntary administration with effect from today.
The announcement came despite the board’s having set up a Transformation Steering Committee in January this year to address the financial difficulties of the company at that time and to review its business model to ensure a sustainable future.
“Travel restrictions and the closure of borders in all our markets and cessation of all international and domestic flights in an unprecedented crisis, has led to a complete erosion of the Company’s revenue base. Furthermore, there is uncertainty as to when international air traffic will resume and all indications tend to show that normal activities will not pick up until late 2020. In these circumstances, it is expected that the Company will not be able to meet its financial obligations in the foreseeable future. The Board, therefore, took the decision to place the Company under voluntary administration in order to safeguard the interest of the Company and that of all its stakeholders,” said the communique.
A. Sattar Hajee Abdoula, FCA, and Arvindsingh K. Gokhool, FCCA of Grant Thornton have been appointed, under sections 215 and 216 of the Insolvency Act, as administrators of the company, with effect from Wednesday, April 22, 2020 at 14h00.
