Comair business rescuers given another extension to find funding

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Business rescue practitioners Shaun Collyer and Richard Ferguson said on Tuesday the request for the postponement was to “negotiate short-term bridging funding as post-commencement finance and advance two offers from potential investors”.

The practitioners said of the two recent investment offers received, one was binding but contained several conditions that needed to be satisfied.

The other was non-binding and further negotiation was required to progress it to the point where it could be included in the business rescue plan. On Wednesday, the practitioners said the rescue plan for the airline — whose board resolved on May 4 to go in business rescue — should have been published within 25 business days after their appointment, unless extended by such longer period as may be allowed by the holders of a majority of the creditors’ voting interests.

“In this regard, the requisite majority of creditors have supported an extension of the date for the publication of the plan to August 28,” the practitioners said in a letter to creditors, employees and registered trade unions on Wednesday.

 

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