South African carrier Comair is delisting from the Johannesburg stock exchange in a move which will allow it to access government-backed financial support.
In an update, the airline’s administrators say it can now apply for funding in the sum of R100 million ($6.9 million) under a Covid-19 loan guarantee scheme put in place by the South African Reserve Bank and private commercial banks.
Such funding is a “fundamental element” of its debt restructuring, say the administrators.
Comair is seeking to put in place a total of R600 million of new debt under its business plan published in September 2020. It had entered restructuring in May.
A consortium comprised of seven individuals plus an investment vehicle, Luthier Capital, is seeking to take full control of the airline, which resumed flights in December.
Comair operates the Kulula low-cost brand and as a British Airways franchisee.