Disgraced Comair in desperate bid for liquidator to take control
Airline operator Comair has expressed an urgent need for a liquidator to take control of the company's assets.
CAPE TOWN - Airline operator Comair has expressed an urgent need for a liquidator to take control of the company's assets.
The high court in Johannesburg on Tuesday ruled in favour of Comair’s urgent court bid for it to be placed in provisional liquidation.
In court papers the carrier cited a fleet valued at around R3.5 billion.
Comair explains its financial woes has rendered it unable to continue funding the airline’s operational costs.
The company was placed under business rescue in May 2020 as part of efforts to resuscitate its struggling finances.
In an affidavit it outlined after it entered business rescue, the airline was able to start flying again when the Comair Rescue Consortium invested R500 million for a 99% equity share in the company at the time.
However, the Omicron coronavirus variant in December last year ushered in travel bans, particularly by the United Kingdom, which dealt a heavy blow to Comair’s flown revenue in comparison to its projected revenue.
More than R100 million was lost in previously booked flights that later had to be cancelled.
The company says there appears to be no reasonable prospect for it to rescued.