Mozambique Airlines (LAM) is no longer insolvent, having recovered a debt of 47.3 million dollars from the state and private individuals since April, a company source told a press conference.

"The debt position was reduced" by improving the debt to equity ratio, leading LAM to no longer be considered insolvent," said Sérgio Matos, a member of the company's management committee, quoted by Lusa.

These operational gains are the result of the positive impact of the intervention of the South African company Fly Modern Ark, which came into action in April to restructure the Mozambican flag carrier, said Matos.

The official pointed to the recovery of funds from unpaid air transport services and the end of credit ticket sales as actions that are enabling the recovery.

The effort meant that LAM's debt fell, but not enough to stop it being high, standing at over 300 million dollars, Matos continued.

The source also considered some of the debts owed to LAM to be uncollectible because they belong to defunct debtors.