Comair business rescue practitioners launch liquidation bid

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Business rescue practitioners of Comair have lodged an application in court to liquidate the troubled company

In a statement released by the practitioners on Thursday, they said the application has been made to court to convert the business rescue proceedings into liquidation.Richard Ferguson, one of the practitioners, said Comair’s two airline brands British Airways and Kulula.com were viable businesses but unfortunately, despite efforts to save the company, they were unable to get capital required for the company to resume operations.

He said after entering business rescue, Comair was able to start flying again when the Comair Rescue Consortium invested R500m for a 99% share of the equity in the company at the time. These included the red-listing of SA by certain European countries and the suspension of the firm’s aviation certificate in March by the regulator, and high fuel prices in the past five months.

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