Government responds to Sapo business rescue ruling
The Department of Communications & Digital Technologies yesterday said the court ruling forcing the SA Post Office (Sapo) into business rescue was an indication that the service is still seen as essential and worth sparing from liquidation.
As previously reported, the Gauteng High Court (Pretoria) on Monday ruled that the business rescue proceedings are to commence with immediate effect.
BusinessTech reports that Sapo’s push into business rescue follows the company owing rent to Bay City Trading and being placed under provisional liquidation.
After being placed under liquidation, the government approached the court to oppose the final liquidation of the post office, instead arguing for it to be put into business rescue.
Judge Elmarie van der Schyff said that the government budgeted an R2.4bn bailout for the entity and has pledged an additional R3.8bn.
Business rescue proceedings are expected to occur subject to approval by the Registrar of Financial Services and ratification by the majority of Sapo’s creditors.
Enoch Godongwana, the Acting Minister of Communications & Digital Technologies, said the ruling highlighted the importance of Sapo as a strategic government asset that provides vital services throughout the country.
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.
