The High Court in Johannesburg has granted airline operator Comair an application to be placed under provisional liquidation.
In court papers, Comair, which operated Kulula and British Airways, said that it no longer had access to capital to fund its operational costs.
Business rescue practitioners also said that the company could no longer meet its obligations towards its funding and trade creditors.
Comair said that it was “commercially insolvent” and should be placed under liquidation.
In the urgent court application, Richard Ferguson, appointed as one of the company’s business rescue practitioners, said that “there is no longer a fair or moderate possibility of implementing the company’s approved business rescue plan.”
Comair suspended operations earlier this month, saying that it was unable to make salary and wage payments owed to its workers beyond May 2022.
It also said that it was no longer able to pay aircraft storage, maintenance, and insurance costs.
Ferguson said that this all meant that Comair could not ensure the continued preservation of aircraft within the company’s fleet valued at approximately R3.5 billion.
-EWN
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