SAPO business rescue 'chance to turn around entity'
The government believes the South African Post Office has the space and time to be turned around.
Acting Minister of Communications and Digital Technologies, Enoch Godongwana, has been reacting to the High Court's decision to place the entity under business rescue.
On Monday, the High Court in Pretoria ordered the post office's business rescue process to begin immediately.
SAPO had been under provisional liquidation after a successful court application by a creditor.
READ: DA: No more bailouts for SA Post Office amid looming liquidation
The state-owned entity has a debt of over R4 billion.
But, with the latest court ruling, it's been given protection from creditors. It's a move government had been pushing for to avoid total liquidation.
Two interim business rescue practitioners have been appointed but must be approved by most of the post office's creditors.
The Communications Department says SAPO provide vital service throughout the country.
It says all stakeholders must live up to the commitments made in the court application.
