The National Union of Metalworkers of South Africa (NUMSA) met with the management team of Comair including the CEO Glenn Orsmond and the company’s Business Rescue Practitioner, Richard Ferguson yesterday. Ferguson confirmed to all those at the meeting that Comair’s financial situation is dire. He said the airline has only two options: to find an investor in the shortest time possible, or else it will be wound down. Even more worrying is that Ferguson was unable to guarantee whether employees .
If boards of directors put financially distressed companies into business rescue earlier, more options would be available, and more companies could be saved Although fewer companies are commencing business rescue proceedings, the number of liquidations remains extremely high. With these numbers in mind, we believe that businesses in South Africa should be considering business rescue more seriously in these difficult times.
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