Comair rescue plan may be delayed by another month

Comair’s business rescue practitioners say they want to delay the publication of a rescue plan to July 28 to further consider a funding offer.

The airline had previously delayed its business rescue plan from June 23 to June 30 to consider the offer, which is a nonbinding expression of interest for cash funding in the form of debt, equity and post-commencement funding.

The practitioners are considering legalities on the expression of interest and to ensure greater certainty in respect of the outcome of the plan, Comair said in a statement on Tuesday.

Creditors have until noon on June 30 to object to the extension, or it will be assumed they have consented.

Comair, which operates British Airways flights and Kulula in SA, entered business rescue in May — a form of bankruptcy protection that allows a financially distressed company to delay creditors’ claims against it or its assets.

The company appointed Shaun Collyer and Richard Ferguson as joint business rescue practitioners to oversee the restructuring  and work out if it can survive or if assets should be auctioned off to pay creditors.

gernetzkyk@businesslive.co.za