Cash-strapped Comair requests deadline extension of publication of business rescue plan
Business rescue practitioners of the owner of Kulula.com and British Airways want to be given a deadline extension regarding the publication of a business rescue plan.
The business rescue practitioners of cash-strapped Comair confirmed this in a media statement sent on Tuesday evening, saying this would give them enough time to negotiate short-term bridging funding.
"Comair’s business rescue practitioners have asked creditors to extend the date for the publication of a business rescue plan by a month.
"The request for an extension until 28 August 2020 is so the practitioners can negotiate short-term bridging funding as post-commencement finance and advance two offers from potential investors," said the practitioners.
"Of the two recent investment offers received, one is binding but contains several conditions that need satisfied. The other is non-binding and further negotiation is required to progress it to the point where it could be included in the business rescue plan.
The short-term bridging finance is urgently required to ensure Comair can meet its limited operational overheads and for the business rescue process to continue," the said.
Creditors had granted a previous extension for the publication of the plan to allow time to advance an earlier non-binding offer. The practitioners were subsequently informed that this could not be taken forward.
"Creditors have until noon on 29 July to grant the extension," he said.
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