Fin24 reports that in an update to employees dated 23 August, Mango's business rescue practitioner Sipho Sono advised that required funding from the Department of Public Enterprises (DPE) had been received and the airline should be able to pay those salaries still outstanding for July 2021 by 29 August.
Furthermore, salaries in respect of August 2021 would be paid by 5 September 2021. Mango suspended all flights at the end of July this year when it became clear it could not meet its obligations, including salary payments. Mango is a subsidiary of SA Airways (SAA). Mango's share of a R2.7 billion special appropriation from the R10.5 billion that Treasury provided SAA in October last year is R819 million. Sono further stated that arrangements for Mango’s resumption of operations were under way and further information would be communicated in due course. The low-cost airline's voluntary business rescue process was approved by the High Court with effect from 28 July. The goal is to have a proposed rescue plan by the end of October. The first meetings as part of Mango’s business rescue process took place last week, with employee representatives and creditors being briefed on the steps ahead. Mango is about R2.5 billion in debt. This includes about R718 million which Mango owes its fellow SAA subsidiary SAA Technical.
- Read the full original of the report in the above regard by Carin Smith at Fin24
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