Liquidation proceedings heading to court as Comair fails to rescue itself
Business practitioners say there is no ‘reasonable prospect’ of the airline being saved
Comair, which handles 40% of the country’s domestic air travel capacity, has been dealt a deathblow with the news that it will be liquidated in the absence of further funding coming to the table.
On Thursday, its joint business rescue practitioners Richard Ferguson and Neil Hablutzel said they no longer believed there was a “reasonable prospect” of the aviation group being saved.
They said according to an April 30 status report, they advised that provided the Comair Rescue Consortium (CRC), the new owners of Comair, could provide them with a “practicable plan” by May 31, raise additional capital funding “in a quantum and within a time frame that provides for the company to settle all of its financial obligations”, and negotiate with its SA lenders to “confirm their forbearance and condonement of arrears amounts”, the BPRs continued to “reasonably believe the company can be rescued”...