Loading
10-Dec-2018 3:22 PM

fastjet able to operate until 14-Dec-2018, seeking solution to GECAS condition

fastjet issued (07-Dec-2018) an update on its equity refinancing and open offer, advising completion of the Solenta Aviation subscription letter remains conditional on satisfaction of the GECAS condition, in which the existing leases of two Embraer E190s will be amended. The condition has not yet been satisfied "despite considerable efforts", fastjet said. fastjet has deferred application for the admission of the new ordinary shares and continues to review its current cash requirements. The airline is able to continue operating until 14-Dec-2018, with the headroom available allowing further time to find a solution to the GECAS condition. As of 06-Dec-2018, fastjet held cash balances of USD6.8 million, of which USD6.4 million is restricted cash held inside Zimbabwe. The airline said ongoing discussions with shareholders have been positive, however "there can be no guarantee of a successful outcome". If it is unable to fulfil the condition, the airline's equity refinancing and open offer will not complete and it will be unable to continue trading as a going concern. Directors then "would have no choice but to formally engage insolvency practitioners to explore restructuring options (including administration) and to commence discussions with interested parties for the sale of the business and assets". [more - original PR]

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More