Court halts Mango airline's business rescue plan

THE process of reviving state-owned low-cost airline Mango appears to have been stopped after the Gauteng High Court, Johannesburg, declared that its business rescue plan cannot be implemented.

- LOYISO SIDIMBA

Aviation Co-ordination Services (ACS) hauled Mango and its business rescue practitioner Sipho Sono to court over the plan to save the subsidiary of South African Airways (SAA).

ACS, which provided security-related services such as baggage and cargo screening services, is among dozens of creditors owed about R2.91 billion by Mango before it was placed under business rescue in July 2021.

At the time it was placed under business rescue, Mango did not own any material assets as its most significant assets were leased.

In September 2021, the only asset on Mango's balance sheet was a spare engine bought by SAA for $9.6 million with the lowest indicative offer received in the last 12 months being around $2m (R30m then).