The East African airline has already paid R 24.7 million of the purchase price.
A general view of an SA Express aircraft. Image: SA Express
CAPE TOWN – The Kenyan charter airline Fly-SAX is buying SA Express for R 50 million, Parliament announced on Wednesday.
The East African airline has already paid R 24.7 million of the purchase price.
SA Express has been in provisional liquidation since April 2020.
READ: SA Express about to sell to private buyers – Public Company Department
One of the interim liquidators of SA Express, Aviwe Ndyamara, has briefed the parliamentary committee on public enterprises and communications.
He said Fly-SAX was the preferred bidder for the state airline.
“The sales process has been started and completed. The preferred bidder is Fly-SAX with a purchase price of R 50 million. We have received around R 24 million to date, and the outstanding balance is no less than R 26 million “
Ndyamara said SA Express’s creditors were owed a total of R 980 million. It owes the SA Revenue Service 150 million Rl and around 183 million Rl to employees.
This consists of severance packages of R 81 million, vacation pay of R 43 million, and outstanding salaries of R 59 million.
READ: Desperate SA Express employees turn to Parly for financial compensation
“Employees are paid preferentially, they have a special preference in bankruptcy law, but they are not paid until the preferred creditors have been paid. At this point it is unclear whether there will be any arrears for paying employee claims, ”added Ndyamara.
SA Express is the first state-owned company to be temporarily liquidated.
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