The department of public enterprises has confirmed a court ruling that SA Express must be placed into business rescue.
SA Express said it is in receipt of the court judgment placing the company in business rescue.
Business rescue is a bankruptcy protection process provided for under the Companies Act that attempts to save companies that are financially distressed by restructuring their operations. It enables a company to continue operating while being restructured, temporarily suspending debt payment obligations, saving some jobs and cutting costs in the process.
“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 airline said in a statement.
“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 statement added.
Despite the efforts by management to turn the airline around, SA Express is technically insolvent as its current liabilities exceed its current assets by R374-million during its 2018/2019 financial year and it recorded a loss of R591-million over the same period.
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.