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A view of SAA aircraft at Cape Town International Airport on February 18, 2020.
Gallo Images / Jacques Stander
- The airline’s business rescue professionals are effectively “stabbing” while they wait for the government to raise funds.
- The completion of SAA’s business rescue process will be postponed for another week.
- This raises the question of what will happen if the government can only contribute a portion of the R10.4 billion needed to implement the rescue plan.
All South African Airways air operations have been suspended with immediate effect while a process to “put the airline under care and maintenance” is underway until financing discussions are completed between corporate rescue professionals and the government.
This is according to an announcement from the flag carrier’s business rescue professionals on Tuesday.
All existing cargo and repatriation flights will be carried out, but new ones will not be accepted.
Already at a virtual meeting of creditors on September 18, rescue professionals from the conflicting airline indicated that they were ready to implement a structured liquidation of the airline and sell its assets, or liquidate it because the government had not yet provided funds. . .
A last minute letter, signed by SAA’s shareholder, the Public Companies Department, as well as the National Treasury, stating continued attempts to obtain funds or a strategic equity partner caused rescue professionals to give the government another week. to get the money at that time. .
It has been more than a week since then.
“There has been some progress during the past week in relation to raising funds for the implementation of the business rescue plan, subject to certain terms and conditions,” states the rescue practitioner’s latest letter to creditors.
Rescue professionals say they have made commitments to the government and “certain funders” who have indicated their willingness to provide a portion of the R10.4 billion in funds required for the implementation of the business rescue plan.
The rescue practitioners are collaborating with the government to secure the remaining funds necessary to fully implement the corporate rescue plan. They are also in talks about what the implications would be for the company if it receives only part of the necessary funds.
Rescue practitioners said they hope to finalize these details next week.
