Provisional liquidators argue against SA Post Office business rescue

The joint provisional liquidators of the SA Post Office do not believe business rescue of the heavily indebted state-owned company is the best way to turn it around.

They say a compromise solution, which would only take a few months to complete, would allow Sapo to emerge from provisional liquidation as solvent . Government could then undertake the operational restructuring of the company. A business rescue of Sapo, which has about R9.4bn in debt, is estimated to cost R140m while a provisional liquidation is estimated to cost R42.5m. It was placed into provisional liquidation in February.

The third uncertainty is the operational restructuring in business rescue which would need to take place, and which would take substantial time, cost and effort.

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