Fly Blue Crane enters into Business Rescue
South Africa's Fly Blue Crane has entered into Business Rescue, the South African equivalent of US Chapter 11 bankruptcy protection, reports ch-aviation.
Fly Blue Crane has been in talks with an undisclosed Gulf carrier over the possible sale of up to 25% equity. The transaction has, however, been hampered by the terms of a ZAR30 million bridging finance loan secured from the state-run Industrial Development Corporation (IDC) which requires Fly Blue Crane not to negatively impact South Africa's state-owned carriers, namely South African Airways, Mango Airlines and South African Express.
As such, for the duration of Business Rescue, the carrier will re-organise and restructure its operations while continuing talks with prospective investors.