Rescue practitioners believe Comair can be rescued.
Comair will continue to pursue efforts to cancel a purchase agreement of eight 737 MAX planes from US manufacturer Boeing.
This according to the latest report to affected parties from Comair’s business rescue practitioners.
Comair owns low-cost airline kulula.com and operates British Airways domestically in terms of a licence agreement. Its original deal with Boeing was concluded in 2013.
The Boeing 737 MAX passenger airliner was grounded worldwide between about March 2019 and December 2020 after two fatal crashes – one by Lion Air and and one by Ethiopian Airlines. Comair received only one of the the 737 MAX planes, shortly before the global grounding. In addition, Boeing did not deliver the second and third MAX planes to Comair in accordance with the delivery schedule.
According to the latest business rescue report, Comair’s sale of its Slow Lounge business as part of a transaction with FirstRand Bank has now been approved by creditors. FirstRand provided an interim loan of R250 million until the finalisation.
Various further funding initiatives are currently being pursued. If all are implemented, the rescue practitioners believe Comair can be rescued.
Comair went into business rescue in May 2020. The Comair Rescue Consortium, comprising several former Comair board members and executives, was chosen as preferred bidder.
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