Fin24 reports that the business rescue practitioner (BRP) for low-cost airline Mango, Sipho Sono, has received several expressions of interest from potential investors.
The names of the potential investors have not been revealed. The selection of the final, chosen investor will be at the sole discretion of the BRP. The final investor will acquire all the shares currently held by Mango's parent company, state-owned South African Airways (SAA). The rescue plan stipulates that any investor who wants to buy the company will have to be able to show that it has access to at least R200 million to enable Mango to resume operations and provide for the necessary working capital. Mango went into voluntary business rescue at the end of July 2021 and has not flown since. It owes R2.85 billion to creditors, and also has about R183 million of un-flown ticket liabilities. Sono believes there is a reasonable prospect of rescuing the company. With regards to the voluntary severance packages (VSPs) offered to Mango employees, the process was initiated in October 2021. A total of 593 were accepted, reducing the staff complement to 105 permanent employees. A consultation process with a view to retrenchments is also expected to begin among the remaining employees. A total of 41 employees have been retained on limited duration contracts to carry out critical duties until the company resumes operations.
- Read the full original of the report in the above regard by Carin Smith at Fin24
Get other news reports at the SA Labour News home page