South African carrier COMAIR is looking to extend the deadline for publishing a business rescue plan as the firm wants to examine a potential bid received late Sunday night, according to a statement published on the firm’s website.
COMAIR entered voluntary business rescue proceedings on 5 May 2020 when administrators were appointed as per the South African Companies Act 2008, as the business rescue practitioners for the Company.
Section 150(5) of the Companies Act requires that the business rescue plan for COMAIR must be published within 25 business days after the date on which the admonitors were appointed, or such longer time as may be allowed by the holders of a majority of the creditors’ voting interests.
COMAIR has twice taken advantage of the ability to extend publication of its business plan, first on June 9 and again on June 23.
On June 21 a non-binding expression of interest for cash funding by means of debt, equity and post-commencement finance from an interested group, which the administrators are exploring, and which is subject to a due diligence investigation and further negotiations.
The Companies Act requires that firms seek the consent of credit to reach an extension and on June 23 COMAIR had received its second consent and is now expecting to publish a new plan on June 30.