Velvet Sky liquidated

Pietermaritzburg - Velvet Sky airline was liquidated by the KwaZulu-Natal High Court in Pietermaritzburg on Thursday.

Judge Phillip Nkosi rejected a request for an adjournment and said he did not believe this was in the interests of creditors.

During earlier hearings, the court heard that Velvet Sky owed almost R100m to its creditors.

Gerrie Roberts, for creditors BP Southern Africa, said on Thursday the application for a further adjournment only delayed the inevitable liquidation.

The low-cost airline was placed under provisional liquidation in May.

At the time, presiding Judge Shyam Gyanda dismissed a second application, by Umzamo Transport Services, for a business rescue plan to be implemented.

He said the application provided scant detail and might be a ploy to delay liquidation proceedings.

On March 7 Umzamo, of Avoca Hills in Durban, claimed Velvet Sky owed it more than R3.9m.

Velvet Sky executive officer Dhevan Pillay said daily expenses could be met if foreign investors provided funds, and if costs were cut.

Major fuel companies decided to stop supplying fuel to Velvet Sky because bills were not being paid.

In February, BP SA launched an application for provisional liquidation.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.13
-0.0%
Rand - Pound
19.92
-0.0%
Rand - Euro
17.16
-0.0%
Rand - Aus dollar
11.00
-0.0%
Rand - Yen
0.13
-0.0%
Gold
1,843.76
0.0%
Silver
27.42
0.0%
Palladium
2,894.50
0.0%
Platinum
1,229.50
0.0%
Brent Crude
68.71
+2.5%
Top 40
60,573
+0.6%
All Share
66,598
+0.7%
Resource 10
69,386
-0.1%
Industrial 25
83,277
+0.9%
Financial 15
12,685
+1.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1456 votes
No, I did not.
52% - 3628 votes
My landlord refused
27% - 1926 votes
Vote