Harare – Embattled Regional airliner, Fastjet on Thursday said it has secured cash to sustain its operations for one more week until the 21st of December.
The operator last week announced it had cash enough to take the operation for just one week up to the 14th of December and this was mainly attributed to forex challenges in Zimbabwe where some of its cash is locked up.
The airline has also been working on equity refinancing and fundraising with a view to raise its capital base by $40 million.
Whereas by last week the company was not firm on the prospects of refinancing, the hurdle has in principle been overcome. On Thursday Fastjet reported that it has now met conditions for an open offer and debt refinancing.
It’s cash amounting to $6.5million out of $8m total cash resources is locked in Zimbabwe among 6 regional destinations, FastJet plies.
Zimbabwe is saddled with steep foreign payment backlog and the situation is worsened by the growing disparity between the USD and local equivalents.
Most creditors, foreign investors and multinational companies have for 3 years now failed to fully access their hard currency invested in Zim
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