SA Roadlink to keep running

Johannesburg - SA Roadlink has reached a settlement with FirstRand [JSE:FSR] bank and will not be liquidated, The New Age reported on Monday.

"We do not deny that the bank did lodge the application, but we have sat down with them and agreed on a settlement which will be made an order by the court on Tuesday," SA Roadlink spokesperson Marnus Kruger told the newspaper.

The New Age previously reported that the company owed the bank about R6m.

The bank had reportedly applied for a liquidation order, claiming the bus company was in a "dire financial position and unable to pay its debts".

According to the newspaper, 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 R1m to the bus manufacturing company Scania SA.