fastjet, the low-cost African airline, is today providing a further update in relation to its current cash position and discussions regarding additional funding, following the announcement on 31 October 2018 which noted that additional funding would be required and 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.
The Company continues to review its current cash requirements and is able to continue operating during November due to some improvement in trading, cash generation and internal efficiencies. The headroom available allows the Company further time to continue discussions with its major shareholders and creditors.
As previously announced, 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 has been constructive but remains ongoing.
As at 7 November 2018, the Group had cash balances of US$ 3.9m, of which US$ 3m is restricted cash held inside Zimbabwe.
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, the Group would be unable to continue trading as a going concern.
Further announcements will be made as appropriate.
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.