), after its business-rescue practitioners informed labour unions over the weekend that they intended to petition the courts to place the airline into liquidation.
The department, which has previously said it has no confidence in the two and has started its own process to develop a rescue plan, unsuccessfully tried to convince SA Express’s creditors to remove Mkhombo and Terblanche as practitioners, claiming they weren’t independent because they were appointed as a result of a court application by one of SA Express’s creditors, Ziegler South Africa.
The extent of the cash-flow problems has meant that SA Express cannot guarantee salaries, and has not yet paid statutory contributions towards employees’ provident fund, pension, income protection, UIF, and pay as you earn, the business rescue practitioners said.“In addition to all these challenges, the situation is now exacerbated by the recent worldwide spread of, which has already had a significant impact on the aviation industry globally.
“In light of the above and based on our own objective assessment of the plethora of challenges faced by the company, we have come to the conclusion that a reasonable prospect to rescue the company no longer exists and, consequently, we will begin a process to convert the current business rescue proceedings of the company into liquidations as envisaged in terms of section 14 and of the Companies Act with immediate effect. This will be done by way of application to court.
SAA, which is also under business rescue and is in the process of restructuring that will shed about 4 000 jobs, will now operate only its domestic route between Johannesburg and Cape Town. Earlier this year it announced that it would pull out of unprofitable routes, including East London, Port Elizabeth and Durban.
Regretfully - this is the 'bug' that killed an airline. If Dudu had used her head and signed an agreement with the then proposer, it would have been a totally different kettle of fish today! Stupidly and arrogance destroyed SAA!