Comair’s business rescue practitioners (BRP) have lodged an application to convert the business rescue into liquation proceedings.
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British Airways and kulula.com – both operated by Comair – have been under tremendous pressure in recent months. After starting the business rescue process, Comair was able to start flying again when the Comair Rescue Consortium (CRC) invested R500m for a 99% share of the equity in the company.
However, Comair faced ‘unforeseen headwinds’, including South Africa being ‘Red Listed’ by several European countries, most notably the UK, as well as the suspension of Comair’s Air operator’s certificate in March 2022.
Despite the best efforts of the BRPs, they were not able to secure the capital needed for both airlines to resume normal business operations.
One of the BRPs, Richard Ferguson stated that ‘we did our utmost to secure the funding, but when we were unable to do so had no option to lodge the application. It is an extremely sad day for the company, its employees, its customers and South African aviation’.
Comair employees and customers affected by the suspension will now become creditors of the company, according to Ferguson.
Picture: Getaway Gallery
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