Business rescue plan approved for SAA low-cost unit Mango
The path is clear for South African Airways (SAA) unit Mango Airlines to find an equity partner.
SAA announced in a statement on December 2, 2021 that creditors have approved the business rescue (BR) plan for the low-cost unit.
“According to the BR practitioners the process to secure a successful bidder, inclusive of concluding the relevant acquisition agreements, is anticipated to be completed by the end of March 2022,” the airline said.
SAA placed Mango into business rescue in July 2021 and it ceased flying on July 27 over unpaid bills. The South African flag carrier said in November that it wanted to find an equity partner for the unit before resuming operations, because were Mango to restart flying, it would only burn through cash and would not succeed.
South African Airways restarted operations on September 23, 2021 after undergoing its own business rescue plan. It spent almost 15 months in administration, during which time it reduced its debt, cut its workforce by some 80% and shrank its fleet. It relaunched with a fleet of just eight aircraft, compared to 32 previously.
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