Court rules liquidators can sell SA Express property
The Gauteng High Court (Pretoria) has ruled the provisional liquidators of SA Express can sell and transfer the state-owned airline’s property and try to attract new investment for the airline.
Fin24 reported last week that the National Union of Metalworkers of SA and the SA Cabin Crew Association claim to have an investor from the United Arab Emirates potentially interested in buying a stake in SA Express.
In terms of SA law, foreign ownership in domestic airlines is limited to 25%.
The regional state-owned airline is in provisional liquidation after a business rescue attempt failed. The court date was set for 9 June for any party to show why the airline should not be placed in final liquidation.
However, due to the possibility of a potential investor, the matter has been postponed until 9 September.
It is likely that a second meeting of creditors will only be able to take place in December 2020. One of the key aspects the provisional liquidators want to avoid is that the airline loses its operating licence.
Should the business be placed in final liquidation, this valuable and essential asset – especially in case the airline ends up having to be sold – will be lost.
The provisional liquidators applied for an extension of their powers, including to be allowed to convene an inquiry in terms of the Companies Act.
The court has granted the provisional liquidators the right to appoint attorneys to supply legal advice and act on their behalf where necessary and to decide whether they want to abide by certain agreements concluded by the airline prior to liquidation.
The provisional liquidators are now authorised to do what is necessary to wind up the affairs of the airline.
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.
