Comair Has Been Delisted From The Johannesburg Stock Exchange
Comair Has Been Delisted From The Johannesburg Stock Exchange. South Africa’s Comair has delisted from the Johannesburg Stock Exchange as part of its restructuring efforts. Stocks in the airline had been publicly trading on the exchange since 1998 but with a consortium of seven companies owning 99% of the shares and the airline attempting to fly its way out of financial difficulties, the delisting surprised no one.
According to Simple Flying, the delisting on Wednesday, April 7, also clears the way for Comair to apply for a US$6.9 million loan under the South African Government’s Loan Guarantee Scheme. Comair can use that money for operational expenses, such as salaries, rent and lease agreements, and contracts with suppliers. The loan is not available to listed companies.
According to the latest status report on the ongoing business rescue, Comair was asked by the Johannesburg Stock Exchange to decide whether to stay listed or not. The status report of March 31 says, “(Comair) is not in a position to either comply with the JSE Listing Requirements and/or able to take the necessary and appropriate steps to do so with the objective of reinstating its listing. “(Comair) can now apply for funding in the sum of R100 million ($6.7 million) under the COVID-19 Loan Guarantee Scheme put in place between the South African Reserve Bank and large commercial banks. The COVID funding is critical to the Company’s survival.”
In March 2020, Comair suspended its flying. In May, the airline announced it was going into a formal business rescue program. “Comair remains solvent,” CEO Wrenelle Stander told Simple Flying. “This is a necessary process to ensure a focussed restructuring of the company takes place as quickly as possible so we can take to the skies again as a sustainable business and play our part in the county’s airline industry.” he added.
In December, Comair resumed flying. The airline also reintroduced domestic British Airways’ routes it previously operated. Comair operates two brands, the low-cost carrier Kulula brand, and the full-service British Airways brand. The airline uses the British Airways brand under license. In the lead-up to resuming flights, Comair found new backers who pumped cash into the airline in exchange for a 99% ownership stake in Comair.
