News24 reports that none of the potential investors who expressed an interest in Mango has provided an "acceptable form of proof of funding" and so they have been given more time to comply.
This is according to a letter dated 14 January 2022 from the airline's business rescue practitioner, Sipho Sono, to those who have indicated an interest in the low-cost subsidiary of state-owned SA Airways (SAA). If no suitable buyer is found, the airline could end up being liquidated. The potential investors' names have not been revealed. Mango's business rescue plan stipulates that any buyer will have to show it has access to at least R200 million to enable Mango to resume operations and provide the necessary working capital. Proof of funding is a peremptory requirement in order to proceed to the next phase of the bidding process. The potential investors now have until 4 February to supplement their original expressions of interest with the necessary documents. Due to the negative impact of the Covid-19 pandemic and related travel bans on the aviation industry, Mango went into voluntary business rescue at the end of July 2021. The airline cannot resume operations until and unless it secures a new investor.
- Read the full original of the report in the above regard by Carin Smith at News24
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