JOHANNESBURG – Comair’s creditors have granted its business rescue practitioners (BRPs) an extension to publish the business rescue plan after an interested investor group requested more time to progress its offer, the BRP have said.
Richard Ferguson, one of the BRPs said on Tuesday that they had been clear from the outset that for this business rescue to succeed, funding would be required.
“We’ve made some significant progress exploring the 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,” he said in a statement.
Discussions with various funders began earlier this month and non-binding expression of interest was received on June 21. The practitioners have since been progressing negotiations so that substantial information about the offer could 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,” said Ferguson.
The creditors on Tuesday agreed to extend the date for the publication of the plan until 28 July 2020.
Earlier this month the BRPs confirmed that they were in discussions with funders to recapitalise the airline in order to resume domestic passenger operations by November 1.
More than 30 potential funders had been contacted and six were progressing discussions.
- BUSINESS REPORT