The government of the Macao Special Administrative Region has admitted it cannot recover a MOP212 million pataca (USD26.2 million) loan granted to the long-defunct Viva Macau (Macau International) back in 2008 and 2009, Macau News has reported.
The authorities have been unable to locate any of the assets pledged as a collateral by Eagle Airways, a Hong Kong-registered company which, despite its name, never directly undertook any aviation activities. Eagle Airways was Viva Macau's main creditor and loaned MOP469 million to the carrier.
The Macanese government has also been trying to sell a stake in Viva Macau owned by Eagle Airways and nominally worth MOP25 million but has failed to find any buyers.
As a result, the authorities have announced their intention to forego the debt and discontinue attempts to recover it.
Viva Macau launched operations in 2006 but went bankrupt in 2010 in the wake of the global financial crisis. The airline operated out of Macau International to Asia and Australia. At the time of its collapse, it had accumulated debts totalling MOP1.14 billion.
