SA Post Office faces liquidation risk
Communications & Digital Technologies Minister Solly Malatsi and the SA Post Office’s (Sapo) joint business rescue practitioners (BRPs) Anoosh Rooplal and Juanito Martin Damons are scrambling to prevent the troubled entity’s liquidation.
According to The Star, Rooplal and Damons have reported that Sapo remains at risk of liquidation in light of its severely constrained cash position.
The BRPs have prepared a draft founding affidavit in support of their application to terminate the business rescue and written a letter to Malatsi and his deputy Mondli Gungubele.
‘The letter and draft affidavit advised the Ministers of the risk of liquidation and explained the statutory duty imposed on the BRPs should they conclude there is no longer a reasonable prospect of rescuing Sapo. The practical implications of a possible liquidation and the broader consequences that such an outcome may have for Sapo, its stakeholder and the country were further detailed,’ Rooplal and Damons said in their latest business rescue status report.
According to the BRPs, Malatsi has also indicated that the government is working to avoid the Post Office’s liquidation and that he has expressed his hope that it could survive for the next six months if the government’s interventions succeed.
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.
