| Comair has joined SAA in business rescue due to the impact of the Covid-19 lockdown on all its operations. It has earned nothing since the lockdown started, putting it in a bit of a financial predicament. To me, business rescue is a canny way for the airline operator to clean up its balance sheet, reduce its workforce and emerge stronger on the other side. And it seems pretty confident that it will return to the skies once flight restrictions have been lifted. Whether it will face competition from a new national carrier is another story. Meanwhile, a deal that I thought was done and dusted has fallen apart. Industrial group enX sold its fleet management and logistics business to Bidvest last July in a transaction that appeared to make sense for both companies. Perhaps Bidvest had second thoughts about buying Eqstra as it declined to extend the deadline after the Prudential Authority failed to approve the deal by the long stop date on Monday. More on those stories to follow, along with an update from Telkom as it delayed the release of its financial results and a report back from specialist logistics property group Equites, which appears to be weathering the lockdown just fine. Also, Anglo American Platinum has one of its processing plants up and running again following emergency repairs which caused it to declare force majeure back in March. Finally, is the coronavirus a potential killer blow for South Africa or is this an enforced opportunity to reset our common economic health and priorities? In his latest report, "South African economic and financial fragility", top trader Andrew Kinsey performs a basic balance sheet analysis of the key component pieces that make up the local economy, including the banking system. Understanding this and then relating that to our own circumstances and intentions provides insight on what the future could hold for us over the next 2 years at least. You can access it here. Have a good day and stay safe. Stephen Gunnion Managing Editor, InceConnect
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