Business rescue plan for Comair delayed as practitioners seek funding

Business rescue practitioners for Comair, which operates British Airways and kulula.com flights, have asked for an extension until next week to publish a business rescue plan.
Business rescue practitioners for Comair, which operates British Airways and kulula.com flights, have asked for an extension until next week to publish a business rescue plan.
Image: KATHERINE MUICK-MERE/Sunday Times

The business rescue practitioners of Comair have asked for an extension until next Tuesday before they publish a business rescue plan.

The practitioners requested the postponement because they are in discussions with potential funders, and this has resulted in a non-binding expression of interest for cash funding.

On June 2 the practitioners said they were in discussions with funders to recapitalise the airline in order to resume domestic passenger operations by November 1.

They said more than 30 potential funders had been contacted and discussions were being held with six.

“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,” Comair said.

Comair, which operates British Airways flights in SA and kulula, entered business rescue on May 5.

The practitioners, Shaun Collyer and Richard Ferguson, had originally aimed to publish the plan on June 9 but then asked for this to be extended until Tuesday.

“The practitioners have asked creditors to extend the publication date for the business rescue plan for a week until June 30 2020 while talks continue.”

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