COMAIR’S CREDITORS CONSENT TO DELAY PLAN

CREDITORS of beleaguered Comair yesterday granted consent for business rescue practitioners (BRPs) to delay the publishing of the business rescue plan to later this month, after an interested investor group requested more time to progress its offer. The BRPs for Comair, which operates British Airways in South Africa and low-cost airline kulula.com, said discussions with various funders began earlier this month and a non-binding expression of interest was received on June 21. Richard Ferguson, one of the business rescue practitioners, said the BRPs had been clear from the outset that funding would be required for this business rescue to succeed. “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,” said Ferguson. He said the BRPs had made significant progress exploring an expression of interest and now the investor group needed to consider the legal issues.