Cape Town – Rea Vaya bus operator PioTrans has been placed under business rescue following a creditor’s attempt to seize part of the fleet due to outstanding debt.
The high court in Johannesburg agreed to the move after alleged maladministration, reports said.
PioTrans has been operating one of Johannesburg’s major bus lines since 2010.
According to EWN, business rescue practitioner Mahier Tayob said that steps were being taken to address the company’s financial challenges and ensure uninterrupted bus operations, especially with commuters expected to return after the holidays.
“I have taken full control of the board and now I will process to invite claims. It doesn’t stop there. I am also obliged to investigate what brought PioTrans into this scenario,” the report quoted Tayob as saying.
The move comes after earlier incidents of Rea Vaya drivers going on strike due to unpaid salaries.
Earlier this year, creditors attempted to seize a portion of Piotrans’ fleet due to outstanding debt, leading to operational challenges for the company responsible for running Johannesburg’s Rea Vaya bus system, The Citizen reported.
In response to these issues, Piotrans has appointed Mahier Tayob as the interim business rescue practitioner to address the company’s challenges and ensure uninterrupted Rea Vaya operations, the report said.
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Compiled by Betha Madhomu
