Comair’s creditors have granted its business rescue practitioners an extension to publish the business rescue plan after an interested investor group requested more time to progress its offer.
“We’ve been clear from the outset that for this business rescue to succeed, funding will be required. We’ve made significant progress exploring an expression of interest and now the investor group needs to consider the legal complexities. It can then make a binding offer and we can include sufficient information in the plan for the affected parties to make a considered decision,” says Richard Ferguson, one of the business rescue practitioners.
Discussions with various funders began earlier this month and a non-binding expression of interest was received on 21 June. The practitioners have since been progressing negotiations so that substantial information about the offer can be included in the plan.
“There is no other reason for asking creditors for the extension. Funding is fundamental to this plan and we cannot reasonably expect affected parties to vote on it until we have a binding offer,” says Ferguson.
The creditors today (30 June) agreed to extend the date for the publication of the plan until 28 July 2020.