- SA Express has been in provisional liquidation since April last year after its business rescue process failed.
- A preferred bidder, Fly SAX, was accepted, but that deal seems to have fizzled out.
- The provisional liquidators deny having received any "realistic" offer, including from Fly Modern Ark.
The provisional liquidators of South African Express (SAX) are still waiting for "a realistic buyer" of the state-owned regional airline.
"The liquidators have received several opportunistic claims, none of which have materialised, and no bidder has been able to provide proof of funding," said Aviwe Ntandazo Ndyamara, on behalf of the provisional liquidators, in a statement on Sunday.
Most importantly, any proposed buyer has to provide proof of funding together with an offer to purchase.
SAX was placed under provisional liquidation in April 2020 after its business rescue process failed. In January this year, the return date to determine if SAX has to be placed in liquidation was again postponed - until 29 April 2021. The aim is still to provide more time to try to save the airline.
Ndyamara confirmed that, regarding the offer by Fly SAX, which had been accepted as preferred bidder last year, "no funds were forthcoming and their have breached the terms and conditions of the sales process".
Fly SAX is an equity crowdsourcing proposal by a group backed by some employees. It was selected as the preferred bid out of about 17 expressions of interest on which due diligence was done. The purchase price for the Fly SAX bid was R50 million, payable in the form of a bank guarantee to be provided to the joint liquidators. Some movable assets sold by the provisional liquidators had reduced this amount in the meantime.
Ndyamara denied rumours that the provisional liquidators received an offer from Fly Modern Ark on 7 April 2021 received an offer from Fly Modern Ark. According to its website, Fly Modern Ark We specialises in aircraft leasing and sales.
"Fly Modern Ark had not provided the liquidators with a tangible offer, proof of funding and did not adhere to the terms and conditions of the sales process. Our understanding is that [Fly Modern Ark] does not have the funds. To the extent that funds have been made available or are available, they are invited to prove same - which the liquidators have repeatedly requested," said Ndyamara.
The joint provisional liquidators called for interested parties to submit expressions of interest in June 2020. All the relevant parties were provided with, amongst other things an indicative price and informed that the process would close on 21 July 2020.
The provisional liquidators and the advisors to the liquidators being Go Industry Dove Bid, assessed the expressions of interest received and advised all of the parties that they had until 11 August 2020 to provide 10% deposit of their indicative offer, as per the expression of interest.
It was to be deposited into an attorney trust account (of their choice) indicating the funds are to be ring-fenced for the transaction. All interested parties were to complete the due diligence and no offer would be considered with a due diligence condition precedent. All final binding offers were to be provided to the liquidators and to Go Industry Dove Bid by close of business on 11 September 2020 and were advised that no later offers would be considered.
According to Theunis Crous, CEO of Fly Modern Ark, they have made numerous offers to the liquidators, of which the final offer was for R1.
"Prior to that we made an offer of R100 million, but then the offer by Fly SAX of R50 million was accepted instead and we do not know why. We have asked for a probe into that," Crous said on Monday.
"We were going to invest a total of R400 million into SA Express airline to get it off the ground again. The fact is there are no assets left. It is just a name. That is why we are offering R1. That is not uncommon to do when a company is in distress."
The Zondo Commission has in the past heard testimony about mismanagement at SAX.