(4 minutes read)
· The business rescue practitioners of Comair announced that creditors’ meeting of the company scheduled to take place yesterday (Friday, 17 July)) has been postponed until Monday 20 July
· The 77-year-old company had accumulated R7.42 billion in assets and liabilities is to the extent of R5.48 billion
The business rescue practitioners of Comair announced that creditors’ meeting of the company scheduled to take place yesterday (Friday, 17 July)) has been postponed until Monday 20 July. Comair has varied interests in South Africa including Kulula.com and operates British Airways domestically under a license agreement. The airline operator, which was under heavy stress for quite some time, grounded all its flights. This had forced the airline to go into business rescue in May.
The 77-year-old company had accumulated R7.42 billion in assets and liabilities is to the extent of R5.48 billion. Comair has to recover R790 million from SAA. However, the latter entered business rescue in early December. After the settlement, Comair was to receive 7.5% of the outstanding amount from SAA against a R1.1 billion settlement in a Competition Commission case.
Comair had been lobbying the state for “special aid” to the airline industry to help deal with the devastating impact of the covid-19 pandemic that triggered the lockdown, before going into the hands of a business rescue team.
The company earlier informed shareholders that it expected to resume flights in either October or November. However, in April, it had asked staff to either take leave or unpaid leave for the extended lockdown period. The reason given was that it could not afford to pay employees their full salaries. On 28 July, Comair creditors are called for a meeting by a business rescue team wherein a plan for rescue will be unveiled. Everyone is looking forward to the outcome of that meeting.
