in Business & Finance

Comair closer to take off

Posted 2 November 2020 · Add Comment

Comair’s business rescue process navigated past two important milestones this week as the investors secured the required credit approval from various lenders of debt funding, as well as approval from various regulators necessary for their investment in Comair to proceed.

 

Among the suspensive conditions in the Comair business rescue plan were the requirements to reach a collective agreement with trade unions representing 50% + 1 employees, and for the investors to secure credit approval from various commercial lenders for new debt funding and the deferral of repayments on existing debt.

 

The first of these was met late last month. The second was achieved earlier this week when various lenders confirmed they would provide the requisite new debt and that capital and interest repayments in respect of existing debt would be deferred for certain agreed periods.

 

Comair also welcomed the Competition Commission’s approval of SA Bidco’s proposed merger with Comair resulting in its acquisition of the business, with certain conditions. These include that, after the current retrenchment process is concluded, Comair may not initiate further retrenchments as a result of the merger for three years from the flying start date, unless retrenchments are lawfully affected for operational requirements unrelated to the merger. Employees who are forcibly retrenched within the current process will have a recall period of three years should jobs become available and these employees be suitably qualified for the roles.

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