The South African Post Office has applied to exit business rescue after reducing creditor debt and stabilising its balance sheet, but its operational turnaround still depends on funding and governance support.
The SOE has applied to the Pretoria High Court, seeking to terminate the proceedings and authorise the filing of a notice of substantial implementation of the adopted business rescue plan, joint business rescue practitioners Anoosh Rooplal and Juanito Damons said in a statement.
During the rescue process, creditor debt was reduced from approximately R8.7 billion to R440 million during the rescue process, while SAPO's balance sheet had improved from a negative net asset position of R7.9bn to a positive R840 million, the practitioners said.
As part of the restructuring, 366 branches were closed and more than 4 300 positions were eliminated, leaving a network of 657 branches.
"The next phase, to grow and modernise the entity, requires shareholder-led intervention, injection of capital, and permanent governance structures," the practitioners said.
They said responsibility for SAPO's future would now pass to the newly appointed board and management team, with the board taking office on June 22.
“The rescue process had prevented liquidation and preserved a national postal network while creating a platform for future initiatives, including partnerships, revenue diversification and the monetisation of property assets. However, a planned government capital injection to support modernisation, digitisation and infrastructure upgrades has not yet been received,” the practitioners said.
The High Court application now awaits a hearing date.
The move comes as SAPO’s role in the small-parcel market remains contested, with courier operators still facing legal uncertainty over sub-1kg deliveries.
