Mango's creditors have accepted R85 million less from government than the R819 million approved by Parliament in a special allocation 18 months ago, in a bid to avoid a long and possibly costly legal battle.The R819 million for Mango was allocated from R10.5 billion approved by former finance minister Tito Mboweni in his 2020 medium-term budget for the implementation of the business rescue plan of Mango's parent company SAA. Mango itself was not in business rescue at the time.
A gap in funding was, therefore, created when Treasury allocated R10.5 billion for SAA's business rescue plan only. Furthermore, Sono explains to the creditors that, notwithstanding what the legal position underlying Mango's entitlement to the payment of the outstanding balance of R85 million is, the outcome of such litigation cannot be guaranteed and may involve a protracted process which will only result in further delays in the implementation of Mango's rescue plan as well as increased costs.
Fin24 To think MANGO flourished and SAA brought it down 🤌🏾🤌🏾🤌🏾
Fin24 Mango is still operational?
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