Post Office can be rescued

The South African Post Office’s Business Rescue Practitioners believe there is a reasonable chance that the state-owned entity can be rescued.

“This is based on the allocated R2.4 billion funding from Treasury in the medium-term budget, the additional funding requirement of R3.8 billion to recapitalise the Sapo, the BRPs interventions and the ongoing support from all stakeholders, including Government, Employees, Trade Unions and Trade Suppliers as well as the Implementation of the restructuring plan.”

“Or, if that’s not possible, [in a manner that] results in a better return for the company’s creditors and shareholders that would otherwise have been obtained from the immediate liquidation of the company.”

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PUSHING THE ENVELOPE: Government department budgets may have to be cut to fund yet another SA Post Office bailoutThe Cabinet has agreed to provide the Post Office with an additional R3.8bn to fund its business rescue process. Budgets of departments might be cut to free up additional money for the Post Office or funds set aside by the government for unforeseeable events might be raided.
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