South Africa’s Mango facing liquidation after rescue as delays make resumption ‘unrealistic’

South Africa’s Mango Airlines is heading for liquidation after a potential investor withdrew from the rescue plan.

The South African High Court halted the rescue bid due to a creditor ruling against the plan’s validity. Sipho Sono proposed an amended plan for a structured wind-down to provide a better return for creditors.

Mango Airlines has been in business rescue since July 2021, currently only holding ZAR382.5m in cash reserves. Expected recovery could be up to 12.18 cents in the rand for creditors amid a total claim of ZAR6.4bn.

Sipho Sono shared “Part of the reason was that the delays have made scheduling a resumption of operations unrealistic. This will result in a better return for creditors than would result from an immediate liquidation. We filed an appeal, but rather than persisting with lengthy and costly legal proceedings, we now propose an amended plan be put to creditors.”