The high court has ruled that the South African Post Office be placed in business rescue with proceedings to commence with immediate effect.
THE HIGH court has ruled that the South African Post Office (Sapo) be placed in business rescue with proceedings to commence with immediate effect.
Judge Professor Elmarie van der Schyff in the Gauteng Division of the High Court, said on Monday that Anooshkumar Rooplal and Juanito Martin Damons would serve as joint interim business rescue practitioners.
The Minister of Communication and Digital Technologies, Mondli Gungubele, had approached the court on an urgent basis to place Sapo under supervision and in business rescue in terms of the Companies Act.
Sapo is currently under provisional liquidation, with the return date for the liquidation application extended to October 30.
The application was not opposed. Notices to abide were filed by the Municipal Employees Pension Fund and Chrisal Investments, two of Sapo’s creditors, and Sapo’s provisional liquidators, the second and third respondents (the provisional liquidators).
Van der Schyff was of the opinion that any possibility of Sapo being rescued depended mainly on the political will to bring about a turnaround.
“It is gleaned from the minister’s papers, and no objective reason exists to doubt the correctness of the evidence provided under oath, that Cabinet has not only pledged to provide Sapo with the initially earmarked R2.4 billion, but also indicated its intention to support Sapo’s application for an additional R3.8 billion in the October budget,” Van der Schyff said.
“The fact that there are conditions attached to the R2.4 billion is a consequence of Sapo being a state-owned entity. The undertaking, however, illustrates government’s commitment to providing Sapo with capital and post-commencement finance to facilitate the institution’s turnaround … Government’s communicated commitment to support any business rescue proceedings by providing capital weighs heavily in support of the application.”
– BUSINESS REPORT
