Post Office says debt already paid in provisional liquidation

The South African Post Office says the debt, that it was placed in provisional liquidation for, is paid and that it will, therefore, not be liquidated.

Many Post Office users, such as Sassa beneficiaries and people who receive their chronic medicine through its deliveries were concerned about reports of the provisional liquidation earlier this week.

The Post Office has now responded at last, saying it has noted a number of articles published recently about its provisional liquidation and that it “is unfortunate that this particular provisional liquidation order relates to a debt that had since been settled”.

When asked for comment earlier this week, the Post Office said it will respond later this week. The Post Office says it wants to reassure its stakeholders and in particular its employees, customers and service providers that it “engaged the appropriate support to ensure that the organisation continues to act in the interests of all its stakeholders”.

“The Post Office remains committed to the long term viability of its business and has as such been engaging with stakeholders on its business turnaround strategy. The organisation has the support of its shareholders and is addressing the matter with the appropriate legal support to ensure that the interests of all stakeholders are protected.”

It is not in the interest of any stakeholder, including creditors and the country for the Post Office to be liquidated, the Post Office says.

“The organisation’s role in the delivery of services to the citizens of South Africa cannot be overemphasised. The Post Office is following all the necessary legal steps to have this matter resolved as soon as possible.”

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Post Office not deterred by provisional liquidation

The Post Office also says that it remains confident that its turnaround plan, called The Post Office Of Tomorrow Strategy, is sound and will indeed achieve its objectives, while government also demonstrated its support of this strategy by facilitating funding of the entity with R2.4 billion to settle its debts with some of its historical creditors, while implementing the strategy towards sustainability.

The Master of the High Court issued a certificate of appointment to Kaap Vaal Trust on 30 March 2023. Kaap Vaal Trust applied for the provisional liquidation after the Post Office was unable to pay its debts.

The Post Office was placed under provisional liquidation before in December 2020, when another creditor applied for liquidation after the Post Office failed to pay its debt. During that provisional liquidation, the provisional liquidators investigated the Post Office’s financial affairs and developed a plan for its future.

In March 2021, the provisional liquidators presented a draft business plan to the creditors and stakeholders that proposed a series of measures to address the company’s financial difficulties, including disposing of non-core assets, restructuring the operation and recapitalising it using a government bailout.

The creditors approved the plan in April 2021, and the provisional liquidation was terminated. The Post Office is now supposed to implement the plan to restore the company to financial health and ensure its long-term viability.