Improvements in trading and cash generation have allowed fastjet to continue its operations past the end of October.
The fastjet group announced last month that additional funding would be required by the end of October to enable it to continue operating.
However, the group says if it is unable to raise capital and/or reach an agreement with its key creditors in the coming days, it will be unable to continue trading as a going concern.
“The company continues to review its current cash requirements and is able to continue operating beyond the end of October due to some improvement in trading and cash generation. The headroom available allows the company further time to continue discussions with its major shareholders and creditors,” it said in a statement on Wednesday.
It added that in conjunction with fundraising discussions, it has been negotiating with key creditors to reduce the outstanding balances due to be paid and reduce the burden of interest and capital repayments.
As at October 24, 2018, the fastjet Group had cash balances of $3.4m (R50.3m), of which $ 2.7m (R39.9m) is restricted cash held inside Zimbabwe.
