(Bloomberg) --
Mauritius government is set to reimburse 9.5 billion rupees ($223.5 million) to creditors of the state-owned airline and provide an additional 2.5 billion rupees to help the carrier emerge from voluntary administration.
The Air Mauritius Ltd. debt-restructuring plan is in a report by administrators Sattar Hajee Abdoula and Arvindsingh K. Gokhool ahead of meetings with three classes of creditors scheduled for Sept. 28. Aircraft lessors will be called to vote for a 65% cut on their claims, while hedge counter-parties will be asked to take a 40% reduction.
In the report dated Sept. 21, the administrators urge creditors to accept the proposed arrangement. If all approvals are secured, the airline will come out of deed administration on Nov. 1, the administrators said.
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