South Africa’s Comair Secures New Debt as Lenders Back Rescue
South Africa’s Comair Secures New Debt as Lenders Back Rescue
Comair Ltd., the South African partner of British Airways, said it secured financing from banks, paving the way for the resumption of flights in December.
The lenders, which weren’t identified, will provide the airline with new debt facilities and defer interest payments on existing debt, according to a company statement. Comair has also reached an agreement with labor unions, it said.
Comair, which operates the low-cost Kulula brand, was put into a form of bankruptcy protection in May after South Africa banned non-essential travel to contain the spread of the coronavirus. The government has since cleared air travel, and domestic carriers including FlySafair and state-owned Mango are experiencing a pickup in demand.
Comair’s shareholders include British Airways, part of IAG SA, and South African industrial group Bidvest Group Ltd.
©2020 Bloomberg L.P.