Air Mauritius went into voluntary administration on Wednesday due to the debilitating impact of travel bans to curb the spread of the coronavirus pandemic.
Air Mauritius expects not to be able to meet its financial obligations “in the foreseeable future”. The board hopes that going into administration will safeguard the interest of the company and that of all its stakeholders. Two administrators have already been appointed in terms of the Insolvency Act of Mauritius.
The primary aim of administration is to try and salvage a company’s business, but if there are no reasonable prospects for this to succeed, an administrator may decide “to terminate or dispose of all or part of the company’s assets, in the interests of creditors, employees and shareholders”, according to the Global Restructuring Review.