The bus company, SA Roadlink, faces liquidation if it does not repay a multi-million rand FirstRand Bank loan.
The company owed the bank R6 million and could be liquidated by Tuesday, The New Age reported today.
The bank had reportedly applied for a liquidation order in the High Court in Johannesburg, claiming the bus company was in a “dire financial position and unable to pay its debts.”
According to The New Age, Roadlink bought five buses each worth R1.08m in 2011, and was R1.4m in arrears on the payments, excluding interest, by November 2012.
It also reportedly owed Scania SA, a bus manufacturing company, R1m.
The newspaper reported the bank took the R6.8m joint loan with a company called Satlog.