Kulula cannot be rescued
Comair, which operates Kulula and BA South Africa, has been unable to raise the funding required for the company to continue with its operations, and as a result, it is beyond rescue.
“Regrettably, the requisite funding could not be raised in order for the company to continue with its operations,” the company said in a statement.
“Accordingly, the company’s joint business rescue practitioners give notice herewith that they no longer believe that there is a reasonable prospect that the company can be rescued.”
The joint business rescue practitioners (BRPs) of Comair Limited, in a status report from 30 April 2022, advised that Comair Rescue Consortium must provide the BRPs with a practical plan of action by 30 May 2022.
It specified that the plan should be aimed at raising additional funding within a time frame for Comair to settle its financial obligations and negotiate with lenders in the country to confirm their tolerance and condonement of the amounts in arrears.
“The BRPs continue to reasonably believe that the company can be rescued,” the status report reads.
However, Comair could not raise the necessary funding, and the BRPs have changed their attitude.
“Accordingly, the Company’s joint business rescue practitioners give notice herewith that they no longer believe that there is a reasonable prospect that the Company can be rescued,” today’s statement said.
Comair announced on 31 May 2022 that it had suspended all British Airways and Kulula.com flights, effective immediately.
It had said at the time that its business rescue practitioners believed the company could raise the funding to save it.
Liquidation confirmed
Comair has published a statement on its website confirming that its BRPs had lodged a court application to convert the business rescue process into liquidation.
“The BRPs ongoing requests to the CRC to provide a plan to raise the further funding necessary to absorb the balance of these and other future potential economic shocks were not successful,” the statement said.
“In the circumstances, the BRPs approached other lenders to raise the funding required. Regrettably when this funding could not be secured before the existing funding was exhausted, scheduled flight operations were suspended on 31 May 2022.”
“Comair’s BRPs continued the process to secure additional funding from other sources but despite several parties expressing interest, they were unable to secure sufficient substantive commitment,” it added.
“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,” said one of the BRPs, Richard Ferguson.
Ferguson said that the company’s employees and customers who held bookings or were owed refunds will now become creditors of the company.
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