LONDON – The national flag carrier of Seychelles, Air Seychelles, has agreed with its debtors to pay back one-third of its debt.

The state-owned news agency, Seychelles News Agency, quoting the airline’s administration, says that the airline will pay $27.8 million out of its initial debt of $71 million owed to bondholders as part of an agreement between the airline’s administrators and its creditors.

Bernard Pool, an appointed administrator, says in a statement talks between that the administrators, Air Seychelles, and the government will continue to ensure that the conditions set within the rescue plan are fully met.

The airline’s ground handling, cargo, engineering, and other services will remain unimpacted, while the regional flights will have to be restructured.

One of the airline’s plans to restructure is to do a sale-leaseback on some of its Twin Otters to raise some cash.

A new Twin Otter costs around $7 million, although the Twin Otters of Air Seychelles is about 7 years old at this point.