High court gives nod to Post Office's business rescue, staving off liquidation amid R2.4bn bailout | Business

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The North Gauteng High Court in Pretoria on Monday granted an application to place the struggling SA Post Office into business rescue, offering protection from creditors. | SikonathiM

The North Gauteng High Court in Pretoria on Monday granted an application to place the struggling SA Post Office into business rescue, offering protection from creditors.

SAPO was placed in provisional liquidation in February due to its failure to pay rent and other liabilities, but its provisional liquidators did not oppose the application. Judge Van Der Schyff said placing the state-owned utility in business rescue would allow the government to inject the much-needed R2.4 billion in funding it has committed to providing.

"The purpose of this application is to avoid the destruction of the SAPO by placing it under business rescue," said Gungubele in the court application."This will give SAPO the space and time it needs to restructure its affairs and implement a turnaround plan under the supervision and direction of the business rescue practitioner. There is a reasonable prospect of SAPO being rescued.

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