Liquidation ‘Day Zero’ for South African Post Office around the corner.
The South African Post Office (SAPO) says that its ‘Day Zero’ is approaching fast in October 2024—the day when its cash reserves will run out and its business rescue practitioners (BRPs) may have to liquidate it.
In an update on the embattled postal group’s business rescue proceedings, it noted that it needed a R3.8 billion bailout from the government to meet its business rescue plan’s needs and to keep operating.
Between June 2023 and June 2024, the SAPO used a R2.4 billion injection to settle its debts and financial obligations to creditors, as well as to pay other settlements and retrenchment costs.
The money was also used to pay salaries and benefits to workers who remained, as well as to cover for its operational shortfall.
