Business rescue practitioner Anoosh Rooplal has confirmed that they are going ahead with retrenchments of almost 6 000 employees at the South African Post Office. Creditors have voted to approve a business rescue plan that is aimed at rescuing the ailing state owned entity, which includes retrenching 6 000 of the company’s 11 000 employees.
Around 420 Post Office branches will also be closed. The rescue plan, first published by joint business rescue practitioners Rooplal and Juanito Damons last month, is contingent on a new R3.8 billion state-funded bailout.
Rooplal outlines the plan of the business rescue…
“The official meeting of creditors the main agenda was to vote on the adoption of business rescue plan implicated to announce that we’ve received the required 75 percent votes in which then the business rescue plan was officially adopted. What that means is that the proposal in the plan becomes biding and all creditors it allows us to now move to the next phase where we focus on the implementation of the plan. Unfortunately, it’s not a great thing, we have to retrench 6 000 employees the formal process will now commence.”
Source: SABC News