Comair sells SLOW Lounge to FirstRand for R250m in business rescue process
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JSE-listed Comair, the parent company of kulula.com and British Airways domestic and regional, said, on Friday, that it had sold its SLOW Lounge business to FirstRand Bank for R250 million, another milestone in the business rescue process.
The SLOW Lounge transaction would require an amendment to the business rescue plan, a notice of which has been despatched to affected persons.
It said this also followed the sale of Comair’s and receipt of a R20 million payment from South African Airways (SAA).
“The R20 million distribution from SAA’s business rescue practitioners is part of the R1.1 billion the state-owned enterprise owed Comair in settlement a damages award for anti-competitive behaviour. SAA paid an initial amount of R289 million in February 2019, with the balance payable in instalments until July 2022. These payments ceased when SAA entered business rescue in December 2019,” it said.
Comair went into business rescue in May 2020.
Richard Ferguson, one of Comair’s business rescue practitioners, said the capital injection was a significant step towards the successful conclusion of the business rescue process.
“There is still work to be done but these capital inflows, the fact that Comair is back in the skies and again earning revenue coupled with the commitment by the investors to support the viability and sustainability of the business, all point to a positive outcome.”