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Comair’s business rescuers have convinced most of the airline’s creditors to give him a new postponement for the publication of his rescue plan.
This is the fourth time that the rescue plan has been postponed.
The business rescuers, Richard Ferguson and Shaun Collyer, applied for a postponement on Tuesday after the business rescue plan had to be published on Tuesday.
Thanks to the latest postponement, the plan will only be published in a month, on 28 August.
The reason for the postponement is to give the business rescuers a chance to negotiate short-term bridging financing and move forward with the negotiations on offers by potential investors.
Comair, which operates British Airways in South Africa and Kulula.com, is still struggling to negotiate a second non-binding offer received by the airline so that it can be included in the final business rescue plan.
That offer for funding was received at 11 a.m. on June 21, just two days before the plan was supposed to be published.
According to the business rescuers, the non-binding offer is possible enough to cover the entire business rescue process.
finance in exchange for equity in the company and debt.
Initially, the business rescuers thought the company would need to be recapitalized through under
more the issuance of new shares, but this would have substantially diluted the interests of current shareholders.
Comair urgently needs to obtain bridging financing to cover its operating expenses and the cost of the business rescue plan.
