Business Report writes that the liquidators of SA Express have warned that they might not be able to save the regional airline and the practical option would be to sell it.
Provisional liquidator Aviwe Ndyamara told MPs on Wednesday that the liquidation had cost more than anticipated and that the current funds might not be enough to wind up the process and pay severance packages to almost 1,000 employees affected by the restructuring. Ndyamara said employees of the SAA subsidiary might not be paid, as the priority was preferential creditors, concurrent creditors and secured creditors. He advised that the remuneration of employees would be dealt with as claims against the company payable from the free residue of a liquidation and distribution account. “The employees enjoy a special preference in terms of the insolvency law, but are only paid after the secured creditors’ claims have been settled. At this stage, it is unclear if there will be residue for payment of employee claims. The implication of the provisional order granted is that employees’ employment contracts were, by law, immediately suspended,” Ndyamara indicated. SA Express employees have not received salaries since March and have had to rely on the UIF Temporary Employee/Employer Relief Scheme (Ters). Ndyamara said the Ters benefits for April and May had been processed and received by the employees, while the UI19 forms, salary schedules, section 38 letters and claim forms had been completed.
- Read the full original of the report in the above regard by Siphelele Dludla at Business Report
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