The embattled airline’s assets exceed its liabilities, and there is a reasonable chance of rescuing it, the group’s business rescue practitioners say
The business rescue practitioners for embattled airline Comair expect to publish a rescue plan on June 9, saying there is a reasonable chance of rescuing the business given its asset base and its importance in terms of SA’s travel infrastructure.
The company has appointed Shaun Collyer and Richard Ferguson as joint business rescue practitioners. They held their first formal meeting with creditors and employees on Tuesday. The business rescue plan will probably be published on June 9, and a shareholder vote to approve it will take place on June 24, the practitioners said in a statement.
Comair had assets of R7.42bn on its balance sheet compared with liabilities of R5.48bn, and was not insolvent, but rather financially distressed, the practitioners said. Comair was also important to SA’s infrastructure, had good standing in the eyes of the public, and was competitively well placed, having enjoyed a 39% market share for domestic travel, the statement read. Due to this, there are “Comair, which operates British Airways flights and Kulula in SA , entered business rescue on May 5. It is a form of bankruptcy protection that allows financially distressed companies to delay creditors’ claims against them or their assets.
The business rescue practitioners will oversee the restructuring of the company to work out if it can survive or if assets should be auctioned off to pay off creditors. They are receiving claims from creditors, and the next step in the business rescue process is the formation of a creditors’ committee and an employee representatives’ committee.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Makhura says Gauteng will move to Level 3 in JuneGauteng now has less than 15% of confirmed cases of the virus in the country, says Makhura.
Read more »
Acsa ‘ready for take-off’ on June 1The Airports Company of South Africa is preparing for the resumption of domestic air travel under lockdown alert level 3 and will have the country’s three major airports ready for flights on June 1. TheMercurySA day54oflockdown
Read more »
Schools might reopen in June except those in 'hot spots'More than 5,000 schools in Covid-19 hot spots across SA, including 929 private schools, will stay shut next month if the cabinet approves a new proposal by the basic education department.
Read more »
‘SAA 2.0’: New deal provides a lifeline - The Mail & GuardianAirline brought back from the brink as rescue practitioners and Gordhan agree to work on a rescue plan by the end of June
Read more »
Gordhan’s SAA truce on the rocks as business rescuers want to wind downPublic enterprises minister Pravin Gordhan delivers scathing rebuke of business rescue practitioners' plan for a structured wind down
Read more »
Unions want SAA business rescue team auditedThe business rescue practitioners have allegedly charged exorbitant fees and made questionable commercial decisions, unions say
Read more »