Business rescue not an option for Post Office | The Citizen

The joint provisional liquidators of the Post Office believe that business rescue is not an option as the embattled state-owned entity has been insolvent for some time, with a recently reported debt of R9.4 billion.

Shaban says since then it became evident that the Post Office owes numerous landlords unpaid rent and these amounts increase monthly. The liquidators took control of the Post Office on 30 March 2023 and used the past three months to bring themselves up to speed with the complicated affairs and financial position of the Post Office in an effort to keep the business afloat.

They say the higher distribution is possible if government honours its statutory guarantee obligation to the Post Office Retirement Fund, leaving a greater share of the R2.4 billion that was committed in the recent budget for distribution among non-employment related creditors. In both cases, employment-related creditors are estimated to receive 100 cents in the rand.

In addition, should the Postbank receive 10 cents in the rand as envisaged in the minister’s application, it will not meet the requirements to obtain a licence as a retail bank, something that is envisaged by the Postbank Bill that was passed by National Assembly on 28 February and the National Council of Provinces on 21 June and which is now awaiting approval by the president in order to be enacted into law, Shaban says.

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