Comair creditors have granted the airline’s business rescue practitioners an extension until August 28 to publish the business rescue plan, confirms spokesman Stephen Forbes. Creditors had until noon on Wednesday to lodge an objection to the extension.
He said the extension is to allow the practitioners more time to negotiate short-term bridging funding as post-commencement finance, which is urgently needed to ensure Comair can meet its operational overheads and for the business rescue process to continue. It will also allow them to consider two offers from potential investors, one of which is binding but contains several conditions that need to be satisfied; while the other is non-binding but needs further negotiation.
Comair, which remains solvent, has been in voluntary business rescue since May 5 after the COVID-19 crisis prevented it from implementing a turnaround plan.