Section 311 proposal may save Nationwide

Laher said neither empowerment group African General Equity (AGE) nor any Nationwide director was involved in the offer. A Business Day report says Nationwide failed to conclude talks with AGE shortly before the airline closed its doors at the end of April. In terms of section 311 of the Companies Act, if 75% of the creditors by value agree to the proposal at a court-sanctioned meeting of creditors, the airline may be discharged from liquidation and sold as a going concern. Laher declined to say how much the airline owed its creditors, as that would prejudice talks with various parties. However, Nationwide's court application for liquidation in April shows that on 31 March this year the group had about R48m in assets and total liabilities of R217m. The papers also indicated that the airline owed fuel supplier BP R9m on 29 April. It also owed Airports Company SA R9m in fees for the first quarter of the year. Full Business Day report