Velvet Sky Liquidated

The Pietermaritzburg High Court in KwaZulu-Natal, South Africa, liquidated Velvet Sky Airline after Judge Philip Nkosi rejected an adjournment, as he did not believe it was in the interests of the creditors. During earlier hearings, the court heard that Velvet Sky owed almost R100m to its creditors.

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. On 7 March, Umzamo claimed that Velvet Sky owed it more than R3.9m and major fuel companies had stopped supplying fuel because of non-payments. Velvet Sky executive officer Dhevan Pillay said daily expenses could be met if foreign investors provided funds, and if costs were cut. In February, BP SA launched an application for provisional liquidation.