SA Express to appeal business rescue ruling
State-owned airline SA Express plans to appeal a judgment in the High Court in Johannesburg ordering it to be placed under business rescue.
A global logistics company applied to the court to place SA Express under business rescue because it believes the airline is technically insolvent and thus cannot pay a bill of about R11.3 million.
This comes after the airline called on debt-laden South African Airways (SAA) to pay what it owes the airline following its R3.5 billion cash injection from Development Bank of South Africa.
SAA was placed under a state-approved rescue plan in December and has been waiting for a pay-out of R2 billion from Treasury.
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SA Express released a statement last week saying that cash-strapped SAA has not been transferring money from bookings.
The airline's spokesperson Mpho Majatladi believes the court went over and above the relief sought by the applicant.
"Considering the content of the judgment, it is clear that the court went over and above what it was required and granted orders not sought by the applicant.
“The court has also not made any order on whether the matter was urgent or not, in circumstances when the urgency was specifically opposed.
"The company has instructed its attorneys to apply for leave to appeal, which leave will be filed as soon as it is considered and settled by senior counsel."