Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
South African state airline SA Express faces liquidation
Published Apr 28, 2020 02:29PM ET
© Reuters.
JOHANNESBURG (Reuters) - A South African court placed state-owned SA Express (NYSE:EXPR) under "provisional liquidation" on Tuesday after the airline's administrators said rescue efforts weren't likely to succeed.
SA Express, which flies to domestic and regional destinations, entered a form of bankruptcy protection earlier this year after losing a court battle with a contractor, logistics firm Ziegler.
It later suspended all operations as the global COVID-19 pandemic caused demand for flights to plunge and governments to impose travel restrictions.
The ruling in the Johannesburg High Court means affected parties can still give reasons why the airline shouldn't be liquidated before a final order is made.
Public Enterprises Minister Pravin Gordhan said in a statement: "Government is reviewing its options in all airline assets."
SA Express is a separate business to much larger state airline South African Airways, which is also under bankruptcy protection and fighting for its survival.
The pair have been a major drain on public resources in recent years, absorbing billions of rands of bailouts.
The public enterprises ministry said last month that the financial woes of SA Express were rooted in corruption and mismanagement under previous executives.
It rejected an initial request for funding from the airline's business rescue team because it lacked a credible business case, it said. The rescue team did not respond to phone calls seeking comment.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.