Business rescue practitioners for Comair have lodged a court application to convert the business rescue proceedings into liquidation proceedings.
Sad news for Comair
Comair’s business rescue practitioners (BRPs) lodged a court application today (9 June 2022) to essentially turn the business rescue proceedings into liquidation proceedings. This comes after the airline’s inability to secure the necessary capital required to resume operations.
Richard Ferguson, one of the business rescue practitioners for Comair said in a statement, that despite Comair being an inherently viable business, the company could not go on.
“Unfortunately, though, despite their best efforts the BRPs had been unable to secure the capital required for the airline to recommence operations.” he said
“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.” he added.
Comair’s BRPs have tried to secure additional funding from sources but despite several parties expressing interest, they were unfortunately unable to secure sufficient substantive commitment.
Read the full statement here.
Ferguson also said that the company’s employees and customers who held bookings or were owed refunds will now become creditors of the company.
ALSO READ: Comair makes a plan for their affected passengers
