Liquidated airline could be sold for R150 000
Following the liquidation of domestic airline SA Express in 2022, the liquidators are two steps away from fully winding up the company, awaiting the sale of its name and brand identity – valued at R150 000.
The Gauteng High Court (Johannesburg) delivered a final liquidation order for SA Express in September 2022, more than two years after it was placed into provisional liquidation on 28 April 2020.
Speaking to the Select Committee on Public Petitions and Executive Undertakings yesterday, appointed liquidator Aviwe Ndyamara updated Parliament on the winding-up proceedings.
BusinessTech reports that SA Express had been trading under insolvent circumstances for quite a number of years, and the main challenge that led to its final liquidation was the attempt to procure post-commencement financing to enable the company to trade out of its business rescue proceedings.
The most successful attempt to save the airline was a consortium of employees banding together to acquire the group’s tangible assets for around R50m.
However, in July 2022, the Air Services Council cancelled the airline’s licences, leaving it with no tangible assets. Meanwhile, the airline’s liabilities were approaching R1bn. When the airline first entered provisional liquidation, the contracts of 600 workers were terminated, leaving many without pay owed to them.
Almost six years later, some of these employees are still waiting.
Ndyamara said that the liquidators had worked closely with the then-Department of Public Enterprises to preserve as much value in the company as possible, enabling it to be sold off for the benefit of its creditors.
‘We have now finalised and almost concluded 90% of the administration. We launched the first and final liquidation and distribution account with the Master of the High Court (in 2025),’ he said.
Assets and moveable assets have been disposed of, with some outstanding debts recovered, VAT recoveries and interest earned on invested funds.
BusinessTech notes that this has left a free residue of around R3.7m payable to creditors, which include secured creditors, preferent creditors (including employees) and other concurrent creditors.
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.
