Mango’s business rescue plan is to be decided on the 14th of November 2021

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Johannesburg| Mango’s business rescue strategy will be decided the 14th of November. Many are waiting with bated breath to see if creditors will approve the low-cost carrier’s business rescue plan, which aims to get it back in the air by December, or if it will be amended, forcing its business rescue practitioners to revise the business plan again.

  • The approach for Mango’s business rescue will be decided on the 14th of November.
  • Many are watching with bated breath to see if creditors will approve the low-cost carrier’s business rescue plan, which intends to bring it back in the air by December, or if it will be altered, requiring its business recovery practitioners to rework the business plan once more.
  • The corporate rescue plan, according to court filings, indicated that the airline would be sold but the jobs of its 708 employees would be safeguarded.
  • Potential partners, according to Butler, are already interested in becoming strategic equity partners in Mango.
  • Butler believes this is a planned move by SAA because they may anticipate Mango’s return could complicate Takatso Consortium’s projected bid to acquire 51 percent of SAA because to its ties to airline Lift.”

Mango is a government-owned subsidiary of SAA that last produced a profit in 2018, despite repeated attempts by the board and management to turn things around. Flight operations for the airline were halted in July due to the airline’s failure to pay for navigation services provided by the Air Traffic Navigation Services (ATNS).

According to Jordan Butler, chair of the Mango Pilots Association, if the plan is altered at the creditors’ meeting on Monday as requested by SAA, a Mango shareholder, retrenchment of the 708 Mango personnel is a possibility.

Butler claims that business rescue practitioner Sipho Sono hopes to reopen the airline by December of this year in order to profit on the holiday season. However, given the SAA board’s desire that Mr Sono revise his previously publicized strategy, it appears exceedingly unlikely.

According to the chair of the Mango Pilots Association, the SAA and Mango filed affidavits and business models to the Gauteng High Court in August, stating that Mango could resume operations by September 1st or be sold as a continuing concern on a solvent basis. The corporate rescue plan, according to court filings, indicated that the airline would be sold but the jobs of its 708 employees would be safeguarded.

SAA, on the other hand, has modified its stance and now requires that Mango relaunch only after it has secured strategic equity partners, which Butler believes would take a long time given the time it takes to complete the Public Finance Management Act procedures. Potential partners, according to Butler, are already interested in becoming strategic equity partners in Mango. He claimed that the airline’s joint union coalition, which includes the Mango Pilots Association, the South African Cabin Crew Association, and the National Union of Metalworkers of South Africa, has received numerous queries.

Butler believes this is a planned move by SAA because they may anticipate Mango’s return could complicate Takatso Consortium’s projected bid to acquire 51 percent of SAA because to its ties to airline Lift.

“ My view is that SAA and the DPE [SAA shareholder the department of public enterprises] are going to keep moving the goalposts as they obviously don’t really want Mango to return.”

“It seems that they (SAA) really want to get rid of us so that the Takatso deal can proceed. With Mango still around the Takatso deal can’t happen as the Competition Commission is very unlikely to approve the deal,” he said.

Staff Writer

Published by
Staff Writer