Provisional liquidation for Velvet Sky | Fin24
  • Credit Rating

    Moody's has (again) said that weak state-owned entities are a risk to SA's sovereign credit rating.

  • SARS Inquiry

    Judge Nugent has recommended the president sack suspended SARS boss Tom Moyane.

  • Nene Rand Rollercoaster

    Simon Brown says savvy investors worked out how the rand would react to uncertainty at Treasury.


Provisional liquidation for Velvet Sky

May 11 2012 15:07

Pietermaritzburg - Velvet Sky airline was placed under provisional liquidation in the KwaZulu-Natal High Court on Friday.

Presiding Judge Shyam Gyanda dismissed a second application by Umzamo Transport Services to grant permission for a business rescue plan to be implemented.

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

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

The court heard then that Velvet Sky owed almost R100m to its creditors.

Velvet Sky executive officer Dhevan Pillay said that daily expenses could be met if possible foreign investors provided funds and if there was cost cutting.

Major fuel companies had decided to stop supplying fuel to Velvet Sky because bills weren't being paid and in February BP SA launched an application for provisional liquidation.

Mergan Chetty, for Umzamo, said Malawi had been interested in an association, but the death of prime minister Bingu wa Mutharika and the reshuffling of government posts had delayed discussions.

velvet sky  |  liquidation


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The appointment of Tito Mboweni will:

Previous results · Suggest a vote