Fin24 reports that the unions that have filed an urgent High Court application to have Mango Airlines placed in business rescue claim that its parent company, SA Airways (SAA), is trying to get them to drop the case in return for getting money transferred to pay outstanding salaries.
"It seems we are being blackmailed," Zazi Nsibanyoni-Mugambi of the SA Cabin Crew Association (Sacca) said on Thursday. She reported that her claim was echoed by the other two unions involved in the court application, namely the National Union of Metalworkers of SA (Numsa) and the Mango Pilots' Association (MPA). "It seems there are hidden agendas that will come to the fore. We are still consulting with our lawyers. This is disgraceful behaviour," said Nsibanyoni-Mugambi. Jordan Butler of the MPA said SAA had made it clear that, if the three unions continued with their urgent application to have Mango placed in business rescue, then bridging finance to pay outstanding Mango salaries would not be paid over. On the other hand, SAA had indicated that, if the unions decided not to go ahead with their urgent application, SAA would pay over monies for Mango salaries. Butler's understanding is that SAA and government would prefer to bring their own business rescue application, "because then they can guide the process via their selected business rescue practitioner - as was the case with SAA". Mango is about R2.5 billion in debt. In June an aircraft lessor company initiated liquidation application proceedings against Mango. The court date was, however, postponed to August following negotiations between Mango and the creditor. Mango employs about 750 people. Mango employees have continued working "out of sheer goodwill" and despite being owed the equivalent of about six months' worth of salaries.
- Read the full original of the report in the above regard by Carin Smith at Fin24
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