JOHANNESBURG – The liquidation of SAA and SA Express is not off the table.
One business rescue practitioner says companies under business rescue can slip into a financially worse state.
According to Dawie Acker, business rescue processes can end in liquidation.
“If it is found that the company cannot be rescued then liquidation will automatically follow.”
Acker adds that business rescue practitioners are still bound by the laws of the country and if they want to retrench staff members they can do so.
Meanwhile, the Companies and Intellectual Property Commission received the court order to have SA Express placed under business rescue.
The commission now has to sign off on it.
Logistics company Ziegler, field an urgent court application to have the airline placed under business rescue due to its financial mess.
The High Court granted the order on Thursday.Until the airline files papers for leave to appeal, the business rescue process will remain in effect.
The airline has indicated it will file for leave to appeal.