SA Express unlikely to survive liquidation – expert
Legal expert Ulrich Roux says SA Express is unlikely to survive after the High Court in Pretoria placed the embattled airline under provisional liquidation on Tuesday.
The airline’s business rescue practioners filed an urgent court application last month, arguing that the airline had no prospects for survival.
The state-owned airline’s request for further funding from the state was rejected – plunging the business into further crisis.
Roux says the chances of a comeback are fast dwindling.
“It’s all up to the fact whether the business can prove that its assets exceed liabilities. If it cannot prove that then, theoretically, the business cannot operate as a functioning business and should be liquidated to try get as much money out of the business for creditors.
“In most instances when a business is placed under provisional liquidation, a final liquidation order is granted down the line.”
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If the order remains uncontested, a final liquidation order will be passed and the Master of the High Court will appoint a liquidator to wind-up the company.
“Any creditor that claims that they are owed money by SA Express can prevent the liquidation thereof to say that they must first settle their debt prior to being liquidated,” Roux adds.
“SA Express themselves can also oppose such an interim liquidation.”
More than 600 jobs will be shed if the airline cannot survive.