Legalities tie up Mango's business rescue plan

THE business rescue practitioner (BRP) of grounded low-cost airline Mango is challenging the Gauteng High Court, Johannesburg, judgment declaring the plan to save the state-owned company unimplementable.

- LOYISO SIDIMBA

Sipho Sono has filed an application for leave to appeal against Judge Denise Fisher's ruling last month.

Judge Fisher found that the plan, stripped of its complexity, amounted to nothing more than the confiscation of creditors’ claims to be transferred by Sono to an investor who pays no value for them or the shares.

She ordered: “The compulsory cession contained in clause 6.2.6 of the business rescue plan was declared to be invalid and of no force and effect. It was declared that the business rescue plan cannot be implemented”.