BusinessLive reports that the business rescue practitioners (BRPs) for Comair expect to publish a rescue plan in three weeks and say there is a reasonable chance of rescuing the airline given its asset base and its importance in terms of SA’s travel infrastructure.  

It entered business rescue on 5 May and appointed Shaun Collyer and Richard Ferguson as joint BRPs.  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 24 June.  The BRPs noted that Comair had assets of R7.42bn on its balance sheet compared with liabilities of R5.48bn, and was not insolvent.  It was, however, financially distressed because there was insufficient cash to pay ongoing costs and obligations and, with its flights grounded for an uncertain period, no opportunity to generate revenue.  The BRPs will oversee the restructuring of the company to see if it can survive or if assets should be auctioned off to pay out creditors.  The next step in the process is the formation of a creditors’ committee and an employee representatives’ committee.

• Read the full original of the report in the above regard by Karl Gernetzky at BusinessLive

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