Pravin’s missed deadline may give Mango new lease on life
Ubuntu Air Services is the company which wants to buy defunct low-cost airline Mango.
Business rescue practitioner Sipho Sono yesterday confirmed to Saturday Citizen that the company named in court papers was the preferred bidder.
Ubuntu Air Services is a partnership between one of South Africa’s largest tour operators, Africa Stay, and DG Capital.
Trade publication CH-Aviation speculated about the identity of the preferred bidder last year, but events have, until now, been overshadowed by Public Enterprises Minister Pravin Gordhan’s efforts to scupper any kind of deal.
Gordhan blocked the sale of Mango last year, citing he did not have enough information to sign off on the deal.
Sono took him to court and won. That forced the minister to sign off within 30 days of its submission to his office, or forfeit his influence.
Gordhan appealed the matter and failed in the high court.
Sono’s update read in part: “The minister was entitled to file a petition to the Supreme Court of Appeal within one month from 13 December 2023, which would have automatically suspended the operation and execution of the principal judgment.”
However, Gordhan failed to deliver his petition on deadline.
“The business rescue practitioner sought legal advice and was informed that where a petition has been belatedly filed, the principal judgment’s order continues to remain operational as a condonation application does not suspend the operation and execution of any order.
“This then means the principal judgment is not suspended and remains executable.”
Sono, then, has a free hand to dispose of Mango.
The Supreme Court of Appeal is Gordhan’s last chance to stop the Mango deal.
The business rescue update warned: “In the event the transaction or investor process … fails for whatever reason, the business rescue practitioner will implement the wind-down process that is already incorporated in the adopted business rescue plan.”
“It’s a farce,” said the Democratic Alliance’s Alf Lees. “Minister Gordhan sends himself from pillar to post, trying to steer what seems to be predetermined outcomes into reality.
“But just like his erratic and secretive dealings in the SA Airways and Takatso matter ... he is clearly heading toward the losing end again,” Lees said.
“Like I said last year, retire him or fire him, because what Gordhan is doing is unconscionable.”
Mango went into business rescue in mid-2021, with the company blaming various external factors, including the Covid pandemic, for its demise.
Since then, the disposal of Mango has become a hot potato, with speculation alleging Gordhan intended to sink it permanently because of its potential threat to Lift, an airline linked to two former Takatso consortium members.
Lift’s founder, Gidon Novick, is no longer part of the consortium, but industry professionals say a revitalised Mango could further challenge any kind of SAA recovery.