Market News

FastJet could go bust if it doesn't reach agreement with creditors

31/10/2018 10:38

(Sharecast News) - Low-cost African airline FastJet cautioned on Wednesday that it could go bust if it fails to carry out an equity fundraising or reach an agreement with its creditors in the coming days. The company said it is continuing to review its current cash requirements and is able to continue operating beyond the end of this month thanks to some improvement in trading and cash generation. FastJet, which noted in its interim results last month that it needed additional capital by the end of October to continue to operate, said the headroom available gives it more time to continue discussions with its major shareholders and creditors. "In conjunction with fundraising discussions, the company has been negotiating with key creditors of the group to reduce the outstanding balances due to be paid and reduce the burden of interest and capital repayments.

This process remains ongoing. "Whilst discussions to date with certain shareholders and creditors have been positive, discussions are ongoing and there can be no guarantee of a successful outcome.

If the company is unable to carry out an equity fundraise and/or reach an agreement with its key creditors in the coming days, the group would be unable to continue trading as a going concern." As at 24 October 2018, the group had cash balances of $3.4m, of which $ 2.7m is restricted cash held inside Zimbabwe.

Investors should be aware that past performance is not a reliable indicator of future results and that the price of shares and other investments, may fall as well as rise and the amount realised may be less than the original sum invested.

Walker Crips Group plc (Old Change House, 128 Queen Victoria Street, London EC4V 4BJ), registered in England, registered number 1432059, incorporates the following companies which are authorised and regulated by the Financial Conduct Authority: Walker Crips Investment Management Limited registered in England number 4774117 member of the London Stock Exchange, Walker Crips Wealth Management Limited registered in England number 3790291, Ebor Trustees Limited registered in England number 3514268, Barker Poland Asset Management LLP registered in England and Wales number OC341149.