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JOHANNESBURG. — The provisional liquidators of SA Express are allowed to sell and transfer property of the state-owned airline, the North Gauteng High Court in Pretoria found yesterday.

They will also be allowed to try and attract new investment for the airline.

Fin24 reported last week that the National Union of Metalworkers of South Africa and the South African Cabin Crew Association claim to have an investor from the United Arab Emirates potentially interested in buying a stake in SA Express.

In terms of South African law foreign ownership in domestic airlines is limited to 25 percent.

The regional state-owned airline is currently in provisional liquidation after a business rescue attempt failed. The court date was set for June 9 for any party to come and show why the airline should not be placed in final liquidation.

However, due to the possibility of a potential investor, the matter has been postponed until September 9.

SA express has not yet been placed in final liquidation and no meetings of creditors have been convened. It is not clear at this stage when the first meeting of creditors would be convened — but according to the court documents seen by Fini24, it is likely that a second meeting of creditors will only be able to take place in December 2020.

One of the key aspects the provisional liquidators want to avoid, is that the airline loses its operating licence. Should the business be placed in final liquidation, this valuable and essential asset — especially in case the airline ends up having to be sold — will be lost.

The provisional liquidators applied for an extension of their powers, including to be allowed to convene an inquiry in terms of the Companies Act.

The court has granted the provisional liquidators the right to appoint attorneys to supply legal advice and act on their behalf where necessary and to decide whether they want to abide by certain agreements concluded by the airline prior to liquidation. The provisional liquidators are now authorised to do what is necessary to wind up the affairs of the airline.

“The provisional liquidators have a duty to investigate the financial position and affairs of SA Express,” states the supporting affidavit by Aviwe Ndyamara of the Tshwane Trust Company.

The liquidators can also now investigate the debtors of SA Express, safeguard and preserve assets and avoid further liability. As of March 2020 SA Express owed its creditors R741 895 597, while it is owed more than R115 683 607 by debtors. South African Airways, currently in business rescue, for example, owes SA Express more than R100 000 000. — Fin24.