The business rescue practitioners of SA Express believe the airline has no reasonable prospects of being rescued because it has run out of cash. The practitioners have launched an application at the High Court in Johannesburg to have the airline liquidated.
The death of SA Express might be imminent -- its business rescue practitioners want to liquidate the struggling airline because it has run out of cash and has no reasonable prospects of being rescued.
Phahlani Mkhombo and Daniel Terblanche, the business rescue practitioners for SA Express, the second state-owned airline, whose flight routes typically serve smaller cities in SA, launched an urgent application at the Johannesburg High Court on Wednesday 25 March to liquidate the airline. The matter might be heard in court on 28 April 2020.
Liquidation is the immediate death of a company as its operations would permanently shut, employees would lose their jobs and assets would be sold to pay creditors.
In court papers obtained by Business Maverick, the rescue practitioners said they want the business rescue proceedings of SA Express to be discontinued and the airline to be liquidated as "there is no reasonable prospect for SA Express to be rescued".
Under the Companies Act,...