Court stays SA Express liquidation until late 3Q20

South Africa’s High Court in Pretoria has delayed the liquidation proceedings of South African Express (XZ, Johannesburg O.R. Tambo) until September 9, giving the government time to come up with solutions to save the embattled airline. On June 9, the court ruled that that the state-owned carrier’s liquidation be postponed after the South African Cabin Crew Association (SACCA), and the National Union of Metalworkers of South Africa (NUMSA) asked for a postponement, the unions said. In papers filed in the High Court, and seen by Reuters, lawyers for the airline’s administrators said the delay in liquidation was necessary as the government may fund the airline’s reboot, citing an earlier allocation from the Department of Public Enterprises of ZAR164 million rand (USD10 million). The lawyers said that postponing liquidation would allow “national executives to roll out proper plans,” and stop SA Express from losing its Air Operator’s Certificate, and Air Services Licence, which could help creditors to recover some money, according to Reuters. NUMSA and SACCA said they remain “vehemently opposed” to the liquidation of the airline. “We believe that SA Express is a viable airline that can be saved, and every effort must be made to find alternatives. The judge granted the order on the basis that we approached the BRPs [business rescue practitioners] and the Department of Public Enterprises (DPE) to engage and explore the possibility of an investor purchasing a stake in the airline,” they said in a statement on June 9.