The Business Rescue Practitioners for embattled Comair, Shaun Collyer and Richard Ferguson, believe there are prospects for the airliner to be rescued.
The practitioners met with creditors and employees to discuss the future of the airline. This after the company entered into business rescue on May 5.
Comair reported a half-year loss of R564-million for the first quarter of 2020. This included R790-million that was unrecoverable after South African Airways entered into business rescue in early December 2019.
Collyer and Ferguson say the airline is not factually insolvent as it has over R7-billion in assets on its balance sheet, compared to their liabilities.
They believe the airlines assets exceed liabilities and hence the airline is well placed; having enjoyed a 3% market share for domestic travel.
The practitioners say the successful rescue of Comair’s business would depend on the support of all stakeholders, and this would include post-commencement finance.
Calls for government to support airlines
Following Comair’s announcement to go into business rescue, aviation experts say the aviation sector urgently needs government support to prevent more companies from suffering.
The aviation industry has taken a hard knock since the outbreak of the coronavirus outbreak in the country.
South African Express and South African Airways (SAA) also entered into business rescue in a bid to safeguard the interests of the company.
Chief Executive Officer of the Airlines Association of Southern Africa, Chris Zweigenthal, says airliners in the country have taken a hard financial knock since the lockdown started…
-Additional reporting by SABC News.