Business rescue practitioners prepare to file court papers to exit Post Office
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The business rescue practitioners are preparing to file papers with the High Court as part of the exit strategy from the South African Post Office (SAPO).
This was revealed by co-business rescue practitioner Anoosh Roopal, along with his co-business rescue practitioner Juanito Damons, who briefed the Communications and Digital Technologies Portfolio Committee on Wednesday.
'We are in discussions with the department around the business rescue having to end and business rescue practitioners having to leave,' Roopal said.
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SAPO was placed under provisional liquidation in February 2023 and later on business rescue in July 2023 after the board of directors was dismissed two months earlier.
Upon their appointment, Roopal and Damons developed a business rescue plan that was approved by the creditors and then assumed management control of the business.
Roopal said they were now in discussions with the Department of Communications and Digital Technologies and preparing a court application to terminate the business rescue process.
This takes place as the financial plan to ensure SAPO remained a going concern was being finalised amid moves to secure payment of R509 million of statutory and payroll creditors owed to the South African Revenue Service (SARS) and medical aid schemes.
'Despite the R3.8 billion not being provided, the business rescue practitioners and the department are in discussions to develop an alternative plan to pay the remaining 18-cent creditors,' he said.
Damons told the committee that they had already consulted their attorneys about the pending application, and the department was aware that they were preparing an application.
'We will ask the court to terminate the business rescue, and we would also ask for consent so that Anoosh and I can file with the Companies and Intellectual Property Commission a notice of substantial implementation.'
Damons said the application comes at a good time, as there was a specialised court in Gauteng that dealt with insolvency and business restructuring.
'To get to that court, it will take us about three to four weeks if we go on a semi-urgent basis, for example,' he said.
Court papers will be drafted next week, and engagements with the department and the unions will take place to make sure all are on the same wavelength.
Damons said that when a business enters business rescue, it has to show that the company does not have the financial ability to cover its operational expenses when they become due and payable.
'At SAPO, at least that does not give us sleepless nights, we have enough funding from June and the ensuing six months. SAPO will be able to pay its operational expenses next six months.'
Roopal said SAPO now has a turnaround strategy in line with its fulfillment of the strategic objectives at the entity.
'What we did was the turnaround strategy. We are quite comfortable that the Post Office has been equipped with a strategy that is viable. All of this depends on funding,' he told the committee.
He also said they were looking together with the Department of Communications and Digital Technologies to find an alternative to pay about R509m owed to statutory bodies such as SARS and medical aids.
'That will discharge the rescue plan and hand over the business back to the shareholder,' said Roopal.
Damons said the department has asked them to negotiate with the creditors owed R509m in statutory and payroll deductions.
'We started talking to these creditors about possible deferment of payment. The department asked us to have a discussion around deferring these payments until 31 March 2026. We reached out, and we have not finalised anything.'
However, Damons said there was a lot of work left in terms of the exit strategy.
'We don't want to be irresponsible by leaving SAPO and finding they are back in this situation, and there is another application looming.
'Exiting business rescue would mean giving up the moratorium that is in place that protects SAPO from any legal proceedings; to start proceedings must get consent of business practitioners before approaching the court.'
mayibongwe.maqhina@inl.co.za
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