Johannesburg – Comair, the operator of British Airways in South Africa and low-cost airline Kulula.com, plans to axe 400 jobs, delist from the JSE and begin flying again in December if the business plan gets the green light.
According to the business rescue plan published late on Wednesday, the airline would see a fresh equity injection of R500-million by a preferred investor in return for 99% shareholding.
Last week, Comair said it had received a binding offer from their preferred investor in the airline.
Up to 15% of this shareholding would be allocated to a broad based black economic empowerment partner within 12-months, Comair said in a statement.
The first R100-million would be paid in two equal tranches in September and October as secured post-commencement finance. Additional funding of R1.4-billion from lenders was required in order to successfully implement the adopted plan. This will comprise R600-million in net new debt.
Shareholders and creditors have until September 8 to consider and adopt the plan.
existing debt would be deferred to provide the remaining R800-million, with capital payments deferred for 12 months and interest for six months.
Comair would be de-listed from the JSE and a new board constituted in due course, the company said.