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fter only a few months of activity and price cutting, velvet Sky airline has been 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.