Comair has managed to secure R40m (€1.9m) in short-term bridging finance that will enable it to meet its limited operational overheads and allow its business rescue process to continue.
This has been confirmed by CEO Wrenelle Stander in a note to employees on Sunday. She said this would allow business rescue practitioners Shaun Collyer and Richard Ferguson the time required this month to assess two offers submitted by potential investors. She added that the assessment would inform the publication of the business rescue plan, scheduled to be published on August 28.
The prospective investors are offering up to R1.5bn (€72m) in the form of debt and equity, including a cash injection. The BRPs previously said one offer was binding, but contained several conditions that needed to be satisfied, while the other was non-binding and needed further negotiation.
Comair’s business rescue plan was due to be published on July 28, but creditors approved a month-long extension of the publication date to allow the BRPs more time to secure the bridging loan as post-commencement finance and to assess the two investment proposals.
Comair, which remains solvent, has been in voluntary business rescue since May 5 after the COVID-19 crisis prevented it from implementing a turnaround plan.