Today's Labour News

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ComairBL Premium reports that Comair’s business rescue practitioners (BRPs) have asked creditors to extend the date for the submission of a business rescue plan by a month, as they negotiate short-term bridging funding to ensure the company covers its operational expenses.  

The practitioners also want the publication of the plan, which was due on Tuesday, to be delayed so they can consider two offers from potential investors to recapitalise the company, which operates Kulula operator and is a British Airways franchisee.  The two unnamed investors are said to be both offering up to a R1.5bn cash injection.  Should creditors grant the extension, the due date for the plan will be moved to 28 August.  Comair was placed in business rescue at the beginning of May.  The BRPs have come under fire in recent weeks by unions and others for pushing to double their fees for restructuring the airline, to R4,000 each an hour.  Their present earnings of R2,000 an hour translates to about R25,000 a day including VAT.   Shareholders and creditors were scheduled to vote on this on 21 July, but that was postponed.  A new date for the vote has yet to be announced.

  • Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (paywall access only)

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