State coughs up R225m after Mango court threat
Mango Airlines, a state-owned carrier, has been given another chance of survival after the government threw it a financial lifeline that might pave the way for its flight operations to resume and the conclusion of its 10-month-long business rescue process, reports the Daily Maverick.
The Mango business rescue practitioner, Sipho Sono, has long complained about delays by the government in releasing funds that are crucial for the airline’s restructuring and survival.
Sono was so frustrated that he took the Department of Public Enterprises and its Minister, Pravin Gordhan, to court to force the government to release money that is due to Mango for its ongoing rescue process.
The impending court action jolted Gordhan and his department into releasing funding worth R225m to Mango.
Because of this, Sono agreed, on 18 May, to withdraw the application.
This emerged from Sono’s regular reports updating the airline’s creditors about efforts to restructure the airline since it was placed under business rescue on 28 July 2021.
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.
