'Not an option': Post Office's provisional liquidators blast state's business rescue plan | Business

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The provisional liquidators overseeing the SA Post Office have come out against a plan put forward by the Department of Communications and Digital Technologies to place the struggling entity in business rescue. | News24_Business

The provisional liquidators of SA Post Office say they fear the state's business rescue plan will fall flat. But the provisional liquidators say they have an alternative to the business rescue to restore SAPO to solvency. The provisional liquidators overseeing the SA Post Office have come out against a plan put forward by the Department of Communications and Digital Technologies to place the struggling entity in business rescue.

Just days before a court is set to hear the department's application, provisional liquidators Anton Shaban and Gerry Musi have said they fear business rescue is"not an option" and will not work.In a statement on Friday, Shaban and Musi said that for business rescue to work, SAPO would need billions of rands in extra funding and a complete overhaul of its business operations. Parliament still needs to pass the Post Office Amendment Bill, they stated.

Instead of business rescue, the Shaban and Musi have put forward a compromise agreement under section 155 of the Companies Act. section of the act used by retailer Steinhoff in its R25 billion settlement agreementThis section of the act allows a company to put forward a compromise agreement to creditors to bypass being liquidated or placed into business rescue. Shaban said a compromise agreement was the best route to restore the Post Office to solvency.

 

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