State-owned airline facing liquidation appliction
Cash-strapped state-owned airline SA Express is facing an application for liquidation because it cannot pay its debts, says a BusinessLIVE report. The application has been brought in the Gauteng High Court by aircraft leasing company Solenta Aviation on the basis of the non-payment of R87.3m and will be heard on 11 August if it is not opposed. But SA Express acting CEO Victor Xaba said the airline did intend to oppose the application because of a dispute over the amount owed.
He said the airline was engaging with legal counsel and Solenta in a bid to find an amicable solution, and gave the assurance to creditors, customers and stakeholders that SA Express was not in financial distress and was able to pay its debts. The report notes the application for liquidation comes hot on the heels of SAA’s inability to repay a R2.3bn loan to Standard Chartered Bank, which required Treasury to step in with a cash injection for this amount.
South African Express has been in financial trouble for several years and made an unaudited loss of R234m loss in 2016-17, says a Business Day report. Solenta Aviation’ Stephen Jolly said in his affidavit that South African Express owed for the lease of aircraft and other services provided between October 2016 and June 2017.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
