South African airline SA Express escapes liquidation for now

South African state airline SA Express escaped liquidation Tuesday after a judge granted a three-month delay in liquidation proceedings, giving the government more time to clarify its plans for the domestic and regional carrier. SA Express was placed under provisional liquidation in April after its administrators said they could not secure funding for turnaround efforts. But in papers filed in the High Court, lawyers for the administrators asked to delay a final ruling on whether it should be liquidated, saying there was a possibility the government could fund a restart of the airline’s operations. They cited a letter from the state enterprises ministry that referred to an allocation of 164m rand ($10m) in the financial year that began in April, subject to certain conditions. The lawyers said that delaying the hearing would allow “national executives to roll out proper plans”. It would also prevent the airline from losing its operator’s certificate and air licence, which could help creditors to recover some money, they added. The request for a delay was supported by the provisional liquidators, who said they needed more time to study the airline’s affairs, as well as some trade unions and creditors.<br/>