Mango is finalising the release of funds from a Passenger Protection Plan guarantee, which will be used to reimburse Mango passengers holding unflown tickets.
Mango is required to receive the support of the domestic Air Services Licensing Council (ASLC) and the International Air Services Council (IASC), which are the legal beneficiaries of the guarantee and therefore control access to the funds.
On January 19, the ASLC informed Mango’s Business Rescue Practitioner, Sipho Sono, that the council had resolved to support the release of the guarantee funds, subject to the necessary conditions. Sono was scheduled to meet with the council on March 9 to confirm approval for the release.
The IASC confirmed on February 26 that it also supported the release of the funds held under the guarantee and intended to provide written confirmation, call up the guarantee and instruct the bank to transfer the funds to the BRP and Mango.
The unflown ticket liability was valued at R169 million at the commencement of business rescue. However, the BRP only received verified claims amounting to approximately R29,5 million by the deadline of September 1.
As a part of the proposed structured wind down, Mango customers with unflown tickets or vouchers will receive an estimated 12,66 cents in the rand, or 12,66% of their total claim value.
