South African Express (EXY, Johannesburg O.R. Tambo) has been placed into provisional liquidation after a Gauteng High Court, on Tuesday, April 28, approved an application submitted by the bankrupt carrier's business rescue practitioners (BRP).
BRPs Phahlani Mkhombo and Daniel Terblanche said in the application that, in the absence of any meaningful revenue inflows as well as its sole shareholder the South African government's unwillingness to inject ZAR200 million rand (USD10.51 million) in promised post-commencement funding (PCF), SA Express stood no reasonable chance of exiting business rescue as a viable entity.
Despite earlier threats to interfere in the process, the Department of Public Enterprises (DPE), which oversees SA Express on behalf of the state, did not oppose the provisional liquidation application.
According to the Daily Maverick, Judge Mpostoli Twala said Mkhombo and Terblanche had satisfied the merits of having SA Express placed under provisional liquidation. However, before a final liquidation order can be imposed, all affected parties must put forward their reasons or show good cause as to why the company should not be wound down.
A hearing is set to be heard in June.
By High Court order, SA Express was placed under involuntary business rescue in February after a court application by the airline’s former service provider and creditor, Ziegler SA.
