Giving Mango control over business rescue sets dangerous precedent - Numsa

The Mango Pilots Association, the South African Cabin Crew Association and metalworkers' union, Numsa, said that they planned to challenge the High Court's decision which handed Mango control over voluntary business rescue.

Mango Airlines. Picture: Mango Airlines official Facebook page.

JOHANNESBURG - Labour unions said despite losing their court battle over the business rescue process at Mango, they believed that their pressure and actions stopped the Public Enterprises Department from allowing the collapse and liquidation of the low-cost carrier.

The Mango Pilots Association, the South African Cabin Crew Association and metalworkers' union, Numsa, said that they planned to challenge the High Court's decision which handed Mango control over voluntary business rescue. This means that the carrier’s board can appoint its own practitioners to oversee the process.

Numsa's Phakamile Hlubi-Majola said that the decision set a dangerous precedent and opened up the business rescue system for abuse.

“Given the disastrous business rescue processes that took place at SAA, we hope that this time things would be different. Companies will theoretically be able to pass a business rescue resolution but never file it, as was the case with the Mango board who sat on the resolution for three-and-a-half months. They can then effectively use it at a later date, as a get out of jail free card should a liquidation application be brought against the company,” she said.

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