SA ExpressBusinessLive reports that the government is deciding whether or not it should oppose the court application by the business rescue practitioners (BRPs) of SA Express to have the ailing state-owned airline liquidated.  

BRPs Phahlani Mkhombo and Daniel Terblanche lodged an application in the High Court in Pretoria on 25 March, asking that SA Express be placed into provisional liquidation.  They also asked the court to order that the business rescue process be discontinued.  The Department of Public Enterprises (DPE) on Sunday said it would decide after studying the liquidation application.  SA Express suspended operations just over a week ago due to the Covid-19 crisis and the 21-day national lockdown.  It is expected to be among the first organisations to apply to the UIF temporary employee relief scheme (Ters) for assistance, under the expedited Covid-19 benefit.  The airline did not pay salaries for March, making it the first state-owned entity (SOE) to run out of cash.  Terblanche indicated that according to SA Express’s own financial information, it owed creditors more than R2bn.  He said he and Mkhombo had approached commercial banks and other development finance institutions in an effort to secure financing, however, the banks indicated their reluctance to provide any further funding, even with the support of a government guarantee.


Get other news reports at the SA Labour News home page