Seychelles said it repurchased Etihad Airways’ 40% stake in its flag carrier for $1, ousted its board and began restructuring the airline’s debt. Etihad accepted a 79% haircut on $72.3 million of debt owed by Air Seychelles, Patrick Payet, secretary of state at the nation’s finance ministry, said in an emailed response to queries. The government also offered to pay $20m to bondholders with $71.5m of debt outstanding, Payet said. Etihad has been unwinding a global expansion plan through which the state-owned Gulf carrier bought a 40% stake in Air Seychelles in 2012. For Seychelles, known for its pristine beaches and diving sites, the revamp of the flag carrier is an opportunity to focus on profitable routes as travel slowly recovers from the pandemic-induced crisis. “This is a time of opportunity for both Air Seychelles and the country, as tourism starts to rebuild following the reopening of its borders,” Etihad said, without disclosing financial details. “Seychelles is an important destination on Etihad’s global network, with bookings steadily increasing.”<br/>