fastjet plc has warned it has only enough liquidity to continue operating until December 14 given delays in the completion of a Solenta Subscription Letter. As at December 6, 2018, an LSE disclosure said that Fastjet Group had cash balances of USD6.8 million, of which USD6.4 million was restricted cash held inside Zimbabwe.

In November, the African low-fare airline specialist said South Africa-based Solenta Aviation Holdings Limited (SAHL) had agreed to subscribe to 316.7 million fastjet shares for a total of USD4.1 million conditioned on GECAS amending two existing E190 leases to fastjet Africa. Had the offer been completed, Solenta’s stake in the company would have risen from 29.8% to 54.3% while its voting shares would have gone from 29.8% to 60.2%.

As it stands, fastjet said an Open Offer had conditionally raised GBP551,719.79 (USD‪702,340.15‬) in respect of 55,171,979 New Ordinary Shares although their issuance has been deferred given the aforementioned funding constraints.

"Despite considerable efforts, the GECAS Condition has not yet been satisfied," fastjet plc said in an LSE filing dated December 7.

"The Company is continuing to take action with a view to enabling the GECAS Condition to be satisfied in the next seven days. [...] If the Company is unable to satisfy the GECAS Condition, the Equity Refinancing and Open Offer will not complete and the Group would be unable to continue trading as a going concern. The Directors would have no choice but to formally engage insolvency practitioners to explore restructuring options (including administration) and to commence discussions with interested parties for the sale of the business and assets of the Company."

The GECAS move stems from fastjet plc's recent decision to exit its Fastjet (Dar es Salaam) unit preferring to maintain its Tanzanian presence via a branding agreement instead. According to The Citizen newspaper, former Home Affairs minister, Lawrence Masha, has raised his stake in Fastjet Tanzania from the previous 4% to 68% after he bought 47% of the company's shares owned by locals and 17% owned by fastjet plc. The remaining 32% is held by South African Hein Kaiser.

As it stands, the now independent Fastjet Tanzania is currently looking for strategic investors of its own, public relations and marketing executive, Lucy Mbogoro, said.