Fastjet races to complete restructure as cash reserves dwindle

Fastjet races to complete restructure as cash reserves dwindle
Published: 28 January 2020 - 5 a.m.

Zimbabwe’s low-cost carrier, Fastjet, has warned that it once again faces collapse unless it can find funding to complete a restructure.

The airline wants to carry out a restructure by the end of March but said on Monday that if its plan does not work out and it does not receive funding then it may be unable to continue trading.

Fastjet is currently in talks with an investor consortium led by its largest shareholder, Solenta Aviation, to sell its operations in Zimbabwe.

The airline is looking to sell its operations for $8 million, which would help it to keep trading until next year. It had just $3 million in reserves as of 23 January.

In a trading update on Monday, Fastjet said it was in the process of finalising the disposal of its Zimbabwe operations.

It said: “The investor consortium is finalising its due diligence on Fastjet Zimbabwe and securing the required regulatory approvals.

“The final negotiations with the investor consortium, including the final consideration payable, will be concluded once this exercise is completed.”

It added: “If the group is unable to carry out the restructuring proposal by the end of March 2020, it would be unable to continue trading as a going concern.”

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