Comair BRPs seek extension to secure potential funding

Johannesburg, 23 June 2020; Comair’s business rescue practitioners’ discussions with potential funders have resulted in a non-binding expression of interest for cash funding.

Earlier this month (2 June) the business rescue practitioners confirmed they were in discussions with funders to recapitalise the airline in order to resume domestic passenger operations by 1 November. Over 30 potential funders had been contacted and six were progressing discussions.

Now that an expression of interest has been received, a due diligence investigation and further negotiations will take place. The practitioners require that a binding offer be made so sufficient details of this can be included in the business rescue plan.

The practitioners have asked creditors to extend the publication date for the business rescue plan for a week until 30 June 2020 while talks continue.

Creditors have until 14:00 today to make any written objections by e-mailing

Notes to editors:

  • Section 150(5) of the Companies Act requires that the business rescue plan must 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.
  • Comair commenced voluntary business rescue proceedings on 5 May 2020.