Kulula.com owner investigating potential cash funding

A Kulula.com Boeing 737 800.
A Kulula.com Boeing 737 800.
(Supplied)

The business rescue practitioners of JSE-listed Comair obtained an extention for the publication of their proposed rescue plan for another week until 30 June due to discussions with potential funders.

Their proposed rescue plan was due for publication on Tuesday, June 23, after the publication date had already been extended from 9 June.

On Sunday night the practitioners received "a non-binding expression of interest" for cash funding, the practitioners said in a statement on the JSE.

"Now that an expression of interest has been received, a due diligence investigation and further negotiations will take place. The practitioners require that a binding offer be made so sufficient details of this can be included in the business rescue plan," they said in a statement.

Comair, owns low-cost airline Kulula.com and operates British Airways domestically under a licence agreement. Before the coronavirus flight bans, Comair had 39% market share for domestic travel, but was struggling financially and had commenced a restructuring process.

UPDATE: The National Union of Metalworkers of South Africa (NUMSA) said in a statement on Wednesday it had warned the rescue practitioners that if they do not postpone the publication of the plan, the union would take them to court because they have failed to consult us as the majority union ahead of the publication of the plan as demanded by the Companies Act.

The practitioners have not paid employee salaries in full since the end of April. NUMSA also questions the practitioners continuing with a retrenchment process before a rescue plan has been published.

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