Comair’s R1bn deal with SAA in question
Listed aviation company wants to meet the national carrier’s business rescue practitioner over the settlement it won
Comair, the listed operator of low-cost carrier kulula.com and British Airways in SA, says it will meet SAA’s newly appointed business rescue practitioner, Les Matuson, to discuss the more than R1bn settlement it won against the national airline.
Chapter six of the Companies Act, which deals with business rescue procedures, puts a moratorium on creditor claims against a company in business rescue. According to the legislation, no legal proceedings and enforcement actions can be instituted against a company in business rescue, which is a legal process to rehabilitate a financially distressed company through a turnaround plan.