Comair seeks business rescue extension
Comair's business rescue practitioners have asked creditors to extend the date for the publication of a business rescue plan by a month, says a Fin24 report.
Comair owns Kulula.com and also operates British Airways domestically under a licence agreement.
The airline operator, struggling before the lockdown began at the end of March, grounded all its flights and went into business rescue in May.
The request for an extension until 28 August 2020 is so that the practitioners can negotiate short-term bridging funding as post-commencement finance and advance two offers from potential investors.
The short-term bridging finance is urgently required to ensure Comair can meet its limited operational overheads and for the business rescue process to continue.
Of the two recent investment offers received, one is binding but contains several conditions that need to be satisfied, the practitioners said in a statement yesterday.
The other is non-binding and further negotiation is required to progress it to the point where it could be included in the business rescue plan. Creditors had granted a previous extension for the publication of the plan to allow time to advance an earlier non-binding offer.
The practitioners were subsequently informed that this could not be taken forward. Creditors have until noon today to grant the extension.
Meanwhile, at SA Express, a group of employees at the state-owned regional airline are desperately hoping that government will be able to assist them in getting their unpaid salaries – last paid in February – as well as retrenchment packages.
Unlike SAA, which is still in business rescue, SA Express has fallen one notch further and is already dangling over the cliff in provisional liquidation, notes a second Fin24 report.
SA Express was provisionally liquidated at the end of April after a failed business rescue attempt. A court date was originally set for 9 June for any party to come and show why the airline should not be placed in final liquidation.
However, due to the possibility that a still-unnamed potential investor may be interested in the airline, the matter has been postponed until 9 September.
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