The Citizen reports that Mango’s business rescue plan must be reworked to suit SA Airways (SAA) and its ultimate shareholder, namely the Department of Public Enterprises.

This was indicated by Mango’s business rescue practitioner, Sipho Sono, after the adjournment of a scheduled creditors meeting held earlier this week. The first rescue plan version, which included a proposed restart, is to be shelved as the government refuses to use bailout funds on Mango. Sono said a restart could only be considered once an investor has been secured to buy Mango. “The airline will be mothballed for a considerable period as the process of securing an investor will take some time. Accordingly, the amended plan will inevitably have to contemplate a greater number of employees being potentially affected by the restructuring than is the case in the current plan, that was published on October 29, 2021,” Sono said. It was agreed at the creditors’ meeting that affected parties will reconvene again in a fortnight after contemplating ditching a restart as part of Mango’s business rescue process. Seemingly, public funds will only be used to settle debt, not drive a going concern. “This is ultimately a death blow for Mango,” said Wayne Duvenage of the Organisation Undoing Tax Abuse.

• Read the full original of the report in the above regard by Hein Kaiser at Moneyweb

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