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Mango employees wait anxiously for creditors meeting on Monday

Details

MangoBusiness Times reports that Mango’s more than 700 employees are anxiously waiting to see whether creditors will on Monday pass the low-cost carrier’s business rescue plan — which aims to get it back in the sky by December — or whether it will be amended with its business rescue practitioners having to go back to the drawing board.

Mango Pilots Association chair Jordan Butler said if the plan was amended at Monday’s creditors meeting, as suggested by Mango shareholder SAA in correspondence with business rescue practitioner Sipho Sono, it could mean Mango would be “mothballed” and its 708 employees retrenched. Butler stated that Sono wanted the low-cost carrier back in the sky by December in time for the lucrative festive season, but this “seems highly unlikely as the SAA board is insisting Mr Sono change his already published plan”. This is detailed in correspondence between the business rescue practitioner and SAA. Interim SAA chair John Lamola said there was no “misalignment” between the SAA board and the business rescue practitioner, with it rather being a matter of when Mango’s operations should resume. But Butler said he believed SAA was opposed to Mango returning to the skies because of the perceived threat to its own operations and that its return could also potentially cause problems for Takatso Consortium’s proposed bid to acquire a controlling stake in SAA. Takatso is SAA's preferred strategic equity partner and is currently negotiating with the Department of Public Enterprises about the purchase price for a 51% interest in SAA.

  • Read the full original of the report in the above regard by Nick Wilson at BusinessLive (subscriber access only)


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