From 1976 to about 1981 (I think), John Etheridge was touring with violinist Stéphane Grappelli on a regular basis - I think it was one large tour a year, usually in the Spring. The first time this happened was in 1977 and Soft Machine had gigs booked in Portugal, which Etheridge couldn't do, so they asked Holdsworth if he could return for those two gigs, which he did.
It appears Holdsworth also played the December 1978 gig in Dortmund, although this isn't 100% certain (basically, Steve Cook remembered travelling once with Holdsworth by road to a distant gig, but since they flew to Portugal, this could only have been Dortmund... other than that, I know very little about this gig, not even 100% sure it was Ric Sanders on violin).
Holdsworth rejoined one last time for the "Land Of Cockayne" sessions in June 1980, but it really was a recording session, not playing as a band.
So RYM is basically right.
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