African operator Fastjet Group expects to meet all preconditions, by the end of March, for divesting its Zimbabwean division and complete the transaction in April.
It says participants of an investor consortium led by Solenta Aviation Holdings remain “committed” to the acquisition of Fastjet Zimbabwe under previously-agreed terms.
Fastjet Group has nevertheless had to negotiate deferral of repayments and settlement discounts with its main creditors as a result of delays to the divestment.
Based on these revised creditor terms and financial projections the company believes it will have “sufficient resources” to meet operational needs until the end of June.
But it adds that this depends on its forecast revenues not being badly affected by the outbreak of the coronavirus. The company is monitoring demand closely for booking patterns arising from the outbreak and states that contingency plans to mitigate the effects on its business are “already in place”.
It had cash reserves of $2.2 million as of 11 March, and warns: “The headroom of available cash resources remains minimal and the projections remain very sensitive to any assumptions not being met or any significant downturn in business.”
If Fastjet Group is unable to complete the Fastjet Zimbabwe divestment or raise additional capital by the end of June, it says, the company will be unable to continue trading as a going concern.
