Comair’s business rescue process can continue as it has received R40 million in short-term bridging finance.
According to Tourism Update, Comair CEO Wrenelle Stander confirmed the procurement in funding to employees on Sunday, August 9. Stander said that this allows the business rescue practitioners time to assess two offers from investors and inform the publication of the business rescue plan.
This is a success after Comair requested and was granted an extension for the publication of the business rescue plan by the company, which has now been set for August 28.
According to Comair, the different proposals are offering up to R1.5 billion in debt and equity, including a cash injection. However, they differ as one offer is binding and contains conditions while the other is non-binding and needs further negotiation.
The company went into voluntary business rescue in May after the COVID-19 crisis stopped it from implementing a turnaround plan. It committed to keeping its operations closed until November, in the meantime formulating and submitting a business rescue plan.
Image credit: British Airways