SA Express' creditors are circling around the cash-strapped state-owned airline. Four former service providers of SA Express want the airline to be placed under business rescue or liquidation because it cannot pay its debt. The service providers are seeking millions of rands from the airline for unpaid services.
Creditors of SA Express are pushing for the struggling state-owned airline to be placed into business rescue or the worst-case scenario of liquidation because it cannot pay its debts despite the efforts of a recently appointed board and management to turn the company around.
SA Express, whose routes typically serve SA's smaller cities and neighbouring countries including Botswana and Zimbabwe, is insolvent and four of its former service providers have separately turned to the high court in Johannesburg to seek millions of rands from the airline for unpaid services.
In January 2020, SA Express will have to defend itself against two court applications from former service providers; one to place the airline under business rescue and the other to liquidate it.
Business rescue is a bankruptcy protection process provided for under the Companies Act that attempts to save companies that are financially distressed by restructuring their operations. It enables a company to...