Kulula.com Boeing 737 800 (Supplied)
Comair’s creditors have granted its business rescue practitioners an extension until 28 July to publish a business rescue plan.
This is after an interested investor group requested more time to progress its offer.
A “non-binding expression of interest” had been received from the group that might be interested in providing cash funding for the owner of Kulula.com and operator of British Airways in SA under a licence agreement.
Comair commenced voluntary business rescue proceedings on 5 May 2020.
The publication date of the proposed rescue plan has previously been extended from 9 June 2020 to 23 June to allow more time for consultation with affected parties, to finalise Comair’s April financial statements and to obtain an independent calculation of the liquidation dividend that must be included in the plan.
After funding discussions with various interested parties, a further extension until 30 June 2020 was granted following the non-binding expression of interest.
The offer of interest was received on the evening of Sunday, June 21. The BRPs say they are still considering certain legal complexities of the offer and how it could affect the outcome of the business plan. The business rescue plan will contain all the information reasonably required to facilitate affected persons deciding whether or not to accept or reject a plan.
“We’ve been clear from the outset that for this business rescue to succeed, funding will be required. We’ve made significant progress exploring an expression of interest and now the investor group needs to consider the legal complexities. It can then make a binding offer and we can include sufficient information in the plan for the affected parties to make a considered decision,” says Richard Ferguson, one of the business rescue practitioners.
“Funding is fundamental to this plan and we cannot reasonably expect affected parties to vote on it until we have a binding offer.”
* This article was updated to reflect the extension to publish the plan having been granted.