Comair BRPs publish business rescue plan

Comair (South Africa)'s business rescue practitioners (BRPs) published (02-Sep-2020) a business rescue plan for the airline, following negotiations with a preferred investor for a ZAR500 million (USD29.8 million) equity injection in exchange for a 99% stake in Comair. Details of the plan include:

• Focus on rationalising operating costs and growing ancillary revenue;
• Reduce workforce from approximately 2200 employees to 1800 through voluntary retrenchment and early retirement programmes;
• Reduce fleet to 20 aircraft, comprising 17 Boeing 737-800s and three 737-400s;
• Maintain existing relationships with British Airways, Discovery Vitality and Boeing;
• Delisting from the JSE;
• Appointment of new board;
• Resume operations in Dec-2020 and gradually expand operations until Jun-2021.

BRP Richard Ferguson stated the business rescue process should be concluded by 31-Mar-2021 if creditors approve the plan. [more - original PR]