The business rescue practitioners (BRPs) of Comair, who are in talks with six potential funders to recapitalise the embattled aviation group, asked creditors on Tuesday for another extension to publish the eagerly awaited business rescue plan.
Comair, which owns kulula.com and operates British Airways domestic flights in South Africa, commenced voluntary business rescue proceedings on May 5, 2020. BRPs Shaun Collyer and Richard Ferguson were appointed to manage the process.
Earlier this month the BRPs asked for an extension to the deadline for publication of the airline’s business rescue plan from June 9 to June 23. Now they are asking for the deadline to be extended by a week, as discussions are ongoing with several possible funders.
Section 150(5) of the Companies Act requires that a business rescue plan be published within 25 business days after the date on which practitioners are appointed. Longer time may be allowed by the holders of a majority of the creditors’ voting interests.
The BRPs reiterated on Tuesday that discussions with potential funders have resulted in a non-binding expression of interest for cash funding.
“Earlier this month (June 2) the business rescue practitioners confirmed they were in discussions with funders to recapitalise the airline in order to resume domestic passenger operations by November 1. Over 30 potential funders had been contacted and six were progressing discussions,” they noted in a statement.
“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 BRPs pointed out.
The practitioners have thus asked creditors to extend the publication date for the business rescue plan for a week until June 30, while talks continue.
* Creditors have until 2pm today (Tuesday) to make any written objections by e-mailing email@example.com