(3 minutes read)
· The business rescue practitioners of South African Airways said that all conditions in the airline’s business rescue plan have
been fulfilled
· However, experts and the opposition parties point out that there is still no indication from where the R10.3 billion funding to implement the rescue plan will come
The business rescue practitioners of South African Airways said that all conditions in the airline’s business rescue plan have been fulfilled. However, experts and the opposition parties point out that there is still no indication from where the R10.3 billion funding to implement the rescue plan will come. The Government’s commitment is only towards mobilizing the funds without mentioning the sources from where it would be mobilized. It is being talked about that the government might have to tap the pension funds to realize the required resources.
The immediate task of the rescue team would be about making payments of R800 million for post-commencement creditors and about R2.2 billion for voluntary severance and retrenchment packages. It also has to find R2 billion towards working capital. The practitioners will be finalizing remaining outstanding administrative issues shortly..
After that, they will file a notice of substantial implementation of the rescue process as required by the Companies Act. On 24 July SAA’s creditors granted government a little bit more time to comply with an unmet guarantee condition required by the previously accepted business rescue plan.
