June 30, 2022

Comair customers could wait years for refunds – and might not get anything back: legal expert

Customers who bought tickets for both Kulula or British Airways flights could wait three years to get their a refund, and it might not be all of it, says Vincent Manko, director of enterprise rescue at legal agency Cliffe Dekker Hofmeyr.

The Kulula.com and home British Airways operator was positioned into provisional liquidation earlier this month and this has led to a hierarchy of collectors which have to be paid, mentioned Manko.

Chatting with SAfm, he cautioned that regardless of some banks refunding customers, those that do not have entry to those providers can be paid final. Ticket holders within the context of the Comair liquidation course of are concurrent collectors.

He added that the liquidation technique of Comair could take as much as two to a few years at a minimal because of the firm’s dimension. Customers will then must wait roughly three to 4 years to get a refund, and there is no such thing as a assure that it is going to be in full.

Manko mentioned customers can strategy the course for recourse in the event that they really feel they’ve been unfairly  ‘duped’ after Comair had a sale of tickets previous to grounding flights.

With regard to Comair’s settlement with British Airways, there will likely be an election amongst expert liquidators as to if they are going to terminate the settlement. Manko mentioned the settlement with the mum or dad firm would seemingly finish as Comair begins being wound up.

On the granting of the provisional order for liquidation, all agreements the Comair had engaged in, comparable to employment agreements, was terminated by operation of legislation. He added that there’ll seemingly be no detrimental impression on British Airways besides for reputational injury.

Rating of collectors

Based on a report by legal agency Bowmans, there’s a rating of collectors through which they’re paid so as from a very powerful to the least, specifically:

  • Secured collectors: who maintain safety over their claims and are ranked and paid first from the proceeds of the sale of property by the liquidating firm.
  • Preferent collectors: collectors who do not maintain particular safety for their claims however rank above concurrent collectors.
  • Concurrent collectors: collectors who’re paid final via the proceeds of unencumbered property that stay after preferent collectors have been paid in full.

Qantas proclaims new flights between Perth and Joburg – chopping six hours from present journey time

Source link