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Creditor postpones Mango liquidation application; outcome of possible business rescue process awaited

Details

MangoFin24 reports that one of low-cost airline Mango's creditors has withdrawn a liquidation application as it waits for the outcome of a possible business rescue process.

The matter, which was meant to be heard on Tuesday, was postponed to allow the lessor, who filed the liquidation application in April this year, to reconsider. Mango and its labour unions both agree that the airline needs to enter into business rescue. Mango filed for business rescue with the Companies and Intellectual Property Commission (CIPC) on 28 July 2021. But the CIPC rejected the filing because it took place months after the initial resolution was taken by Mango to opt for business rescue in April. Mango now wants the court to rule that the CIPC wrongfully dismissed its notice. The trade unions - the Mango Pilots' Association (MPA), the SA Cabin Crew Association (SACCA), and the National Union of Metalworkers of SA (Numsa) – have meanwhile lodged their own business rescue application with the courts. The South Gauteng High Court reserved judgment on Friday nd is set to hand down a ruling by Wednesday. Numsa’s Phakamile Hlubi Majola said the union wants the court to allow their preferred practitioner, Ralph Lutchman, to be involved in the business rescue process. Mango wants Sipho Sono to be appointed business rescue practitioner. Mango employees' salaries for June are still outstanding. With the exception of September and December last year and February to May this year, when they got full salary payments, Mango employees have been receiving partial salary payments since April 2020.

  • Read the full original of the report in the above regard by Lameez Omarjee and Carin Smith at Fin24


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