KENYAN LOW COST AIRLINE AGREES TO PAY 50 MILLION RAND FOR ‘UNDER LIQUIDATION‘ AIRLINE
(Posted 11th February 2021)
Reports are coming in that one of the provisional liquidators of SA Express has told parliament in Pretoria that the bidding process for the disposal of SA Express has been concluded and that Kenya’s FlySax has emerged as preferred bidder.
The provisional liquidators also confirmed to have received almost half of the 50 million Rand sales price agreed already and that the balance was to be paid in due course.
The South African airline halted operations last year in April after owing creditors, staff and tax department more than 1.3 billion Rand.
South Africa’s Public Enterprise Department already last week confirmed the intention to sell the airline’s assets but will itself very likely remain responsible for the accumulated debts.
It is unlikely that the employees will see much of the purchase price as preferred creditors have priority for settlement with any proceeds the provisional liquidators can get.
The report also turns the focus back on South African Airways, which fate continues to hang in the balance, more so after Ethiopian Airlines earlier this week reported a lack of progress in the discussions for a joint venture.