Johannesburg, 30 June 2020; Comair’s creditors have granted its business rescue practitioners an extension to publish the business rescue plan after an interested investor group requested more time to progress its offer.
“We’ve been clear from the outset that for this business rescue to succeed, funding will be required. We’ve made significant progress exploring an expression of interest and now the investor group needs to consider the legal complexities. It can then make a binding offer and we can include sufficient information in the plan for the affected parties to make a considered decision,” says Richard Ferguson, one of the business rescue practitioners.
Discussions with various funders began earlier this month and a non-binding expression of interest was received on 21 June. The practitioners have since been progressing negotiations so that substantial information about the offer can be included in the plan.
“There is no other reason for asking creditors for the extension. Funding is fundamental to this plan and we cannot reasonably expect affected parties to vote on it until we have a binding offer,” says Ferguson.
The creditors today (30 June) agreed to extend the date for the publication of the plan until 28 July 2020.
Notes to editors:
- Section 150(5) of the Companies Act requires that the business rescue plan be published within 25 business days after the date on which the practitioners were appointed. Longer time may be allowed by the holders of a majority of the creditors’ voting interests.
- The publication date has previously been extended from 9 June 2020 to 23 June to allow more time for consultation with affected parties, to finalise Comair’s April financial statements and to obtain an independent calculation of the liquidation dividend that must be included in the plan. After funding discussions with various interested parties, a further extension until 30 June 2020 was granted following a non-binding expression of interest.
- Comair commenced voluntary business rescue proceedings on 5 May 2020.