COMPANY NEWS IN BRIEF
Comair placed in provisional liquidation
Kulula.com and local British Airways operator Comair was placed in provisional liquidation by the South Gauteng High Court in Johannesburg on Tuesday.
The liquidation is necessary for Comair to preserve its fleet of aircraft, valued at about R3.5 billion, for the benefit of creditors, according to the company's business rescue practitioners (BRPs).
All affected parties have until 26 July to provide the court with reasons why the provisional liquidation order should not be made a final order.
Comair cannot pay aircraft storage, maintenance and insurance costs, so it cannot ensure the preservation of its fleet anymore. That is one of the reasons why its business rescue practitioners (BRPs) made an urgent high court application for its liquidation.
Comair operated its own low-cost airline, kulula.com, and domestic and regional British Airways flights as part of a franchise agreement, and accounted for some 40% of the domestic aviation market. It had to suspend flights on 31 May this year when it could not meet its financial obligations anymore. -Fin24
Kulula.com and local British Airways operator Comair was placed in provisional liquidation by the South Gauteng High Court in Johannesburg on Tuesday.
The liquidation is necessary for Comair to preserve its fleet of aircraft, valued at about R3.5 billion, for the benefit of creditors, according to the company's business rescue practitioners (BRPs).
All affected parties have until 26 July to provide the court with reasons why the provisional liquidation order should not be made a final order.
Comair cannot pay aircraft storage, maintenance and insurance costs, so it cannot ensure the preservation of its fleet anymore. That is one of the reasons why its business rescue practitioners (BRPs) made an urgent high court application for its liquidation.
Comair operated its own low-cost airline, kulula.com, and domestic and regional British Airways flights as part of a franchise agreement, and accounted for some 40% of the domestic aviation market. It had to suspend flights on 31 May this year when it could not meet its financial obligations anymore. -Fin24
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