State-owned regional airline SA Express has been placed in provisional liquidation after its business rescue practitioners filed an urgent court application, a reliable source confirmed to Fin24 on Tuesday.
This comes after practitioners lodged the application in the Pretoria High Court on March 25.
In March SA Express, like other airlines had to suspend operations due to travel bans imposed for the national lockdown in SA. The BRPs have not been able to pay salaries for SA Express staff in March or April. Formal applications have been launched with the UIF for consideration of Covid-19 relief aid in this regard.
Gideon Slabbert, managing director and business rescue practitioner at Turnaround Rescue Solutions, explains that provisional liquidation means the affected parties have an opportunity to contest the court order.
The court can appoint a provisional liquidator to preserve the assets of a company until it hears the winding up application and decides whether or not to appoint a liquidator.
If the order remains uncontested, a final liquidation order will be passed and the Master of the High Court will appoint a liquidator to wind-up the company.