The South Gauteng High Court has ordered state-owned airline SA Express be placed under business rescue.
The ruling comes after logistics company Ziegler filed an urgent court application, in an effort to recover around R11.3 million it says the airline owes.
As part of the High Court’s ruling, business rescue practitioners Daniel Terblanche and Phahlani Mkhombo have been placed in control of the airline.
SA Express has acknowledged the judgement and has already indicated that it plans to appeal the finding.
“Considering the content of the judgment, it is clear that the court went over and above what it was required and granted orders not sought by the applicant,” it said.
“The court has also not made any order on whether the matter was urgent or not, in circumstances when the urgency was specifically opposed.
“The company has instructed its attorneys to apply for leave to appeal, which leave will be filed as soon as it is considered and settled by senior counsel.”
SA Express is primarily a regional airline and caters for both business and leisure travellers by offering flights to most destinations within South Africa and services between Botswana, Namibia, and the Democratic Republic of Congo.
This is the second state-owned airline which is facing business rescue in as many months, with South African Airways beginning its business rescue proceedings in December 2019.