Troubled African budget carrier Fastjet as gained breathing space to maintain operations throughout November.
The airline warned last week that it would be unable to continue trading as a going concern without additional funding.
Fastjet, founded by easyJet creator Sir Stelios Haji-Ioannou, today revealed that it had cash balances of $3.9 million, of which $3 million is restricted money held inside Zimbabwe.
In a statement to the London stock exchange this morning, the airline said: “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.”
Fastjet added: “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.
“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.”
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