With court rulings declaring its business rescue plan invalid, failed appeals and the withdrawal of its would-be saviour investor, Mango Airlines’ Business Rescue Practitioner Sipho Sono has called for a structured wind-down of the airline.
In a circular to affected parties on August 4, Sono said, instead of continuing costly and time-consuming appeal proceedings, he will publish an amended plan on August 19 for creditors’ reviews and votes. The goal is to maximise their payout before formally closing the airline’s books.
Alternatively, the airline will undergo a liquidation process, as outlined by an independent liquidator.
“The Business Rescue Practitioner anticipates being in a position to pay an initial dividend (70% of the projected dividend) to creditors within 30 days of the adoption of the amended plan, and the balance within three to five months thereafter, following the conclusion of the unflown ticket liability claim verification process currently anticipated to be finalised by the end of September 2025,” said Sono.
The collapse of the investor deal marks a significant setback to any likely prospect of Mango returning to the skies. The investor, Ubuntu Air Services, had planned to relaunch flights under the Mango brand through a partnership with another licensed airline but pulled out on July 31, citing delays, regulatory hurdles and funding challenges.
