The government's move to place the SA Post Office under business rescue is designed to buy the state-owned company some time from having to immediately pay back creditors and shield it from lawsuits from parties demanding payments running into billions of rands.

The SA Post Office is on track to be the fourth state-owned enterprise (SOE) to be placed under business rescue in nearly four years, as the struggling company attempts to avoid the worst-case scenario of having to permanently close its doors.

The Department Of Communications and Digital Technologies, which oversees the SA Post Office, has applied to the high court in Pretoria to have the SOE placed in a business rescue process, which would provide it with the breathing room to be saved from collapse.

If the court application, to be heard on 4 July, is successful, the Post Office will follow in the footsteps of SOEs including SAA, Mango Airlines and SA Express.

SAA was placed under business rescue in December 2019 and emerged from the process in April 2021. The airline has resumed flights as a smaller entity. Mango Airlines is still under business rescue while SA Express' process has failed and the airline has shut down ahead of liquidation.

The government's move to place the SA Post Office under business rescue is designed to buy the SOE some time from having to immediately pay back creditors and shield it from lawsuits from parties that have demanded payments....