Kulula.com Boeing 737 800 (Supplied)
- Comair’s business rescue practitioners have advised shareholders that a creditors’ meeting has been postponed to Monday 20 July.
- The airline went into business rescue in May.
- Comair’s creditors have granted its rescue practitioners an extension until 28 July to publish a business rescue plan.
The business rescue practitioners of Comair advised shareholders in a JSE-notice that a creditors’ meeting that was scheduled to take place on Friday, has been postponed until Monday 20 July.
Comair owns Kulula.com and also operates British Airways domestically under a license agreement. The airline operator, which was struggling before the lockdown began at the end of March, which grounded all its flights, went into business rescue in May.
It is estimated that the 77-year-old company had R7.42 billion in assets on its balance sheet at that time, compared to liabilities of R5.48 billion.
Comair stands to receive just 7.5 cents in the rand on the R790 million that was unrecoverable after SAA entered business rescue in early December. The money was for outstanding payments still owed by SAA to Comair on a R1.1 billion settlement in a Competition Commission case.
Earlier this week Comair also advised shareholders that, in terms of the Companies Act, the claims of subsidiaries are not deemed to be that of independent creditors. That would mean these subsidiaries would not be able to vote on the acceptance of a rescue plan.
In terms of the Companies Act, the determination of independence of creditors is necessary prior to a vote on a business rescue plan. A plan will be adopted if it was supported by 75% of creditors’ voting interests, including at least 50% of independent creditor’s voting interests.
Shareholders in the company will, for instance, be regarded as independent creditors.
Before going into business rescue, Comair had been lobbying the state for “special aid” to the airline industry through industry initiatives to help deal with the devastating impact of the covid-19 pandemic that triggered the lockdown.
A week before going into business rescue, the company informed shareholders that it only expects to resume flights in either October or November.
Late in April Comair had asked staff to either take leave or unpaid leave for the extended lockdown period, as it could not afford to pay employees their full salaries.
Comair’s creditors have granted its rescue practitioners an extension until 28 July to publish a business rescue plan. This was after an interested investor group requested more time to progress its offer.
