(3 minutes read)
· The South African Airways creditors will finally have a chance to vote on the business rescue plan put up by business rescue
practitioners next week
· The business rescue practitioners published their rescue plan earlier in the week after repeated delays, as reported by www.
trendsnafrica.com a few days back
The South African Airways creditors will finally have a chance to vote on the business rescue plan put up by business rescue
practitioners next week.
SAA went into business rescue in December last year following years of losses and repeated state bailouts. The business rescue practitioners published their rescue plan earlier in the week after repeated delays, as reported by www. trendsnafrica.com a few days back. A virtual meeting to vote on the plan to determine the future of the company will take place on Thursday, June 25 at 11:00.
The business rescue plan envisages that the government will have to mobilize more than R10 billion to keep the airline from going under
liquidation. The allocated funds have to be used for getting the airline operational again (R2 billion); paying a dividend of 7.5 cents
to concurrent creditors (total of R600 million); paying severance packages to employees not being retained (R2.2 billion); paying post-business rescue commencement creditors (R800 million); paying about R1.7 billion to lessors; and paying for unclaimed outstanding tickets (R3 billion). This package excludes about R16.4bn in historic government-guaranteed debt already allocated in previous budgets. Creditors, which include employees, have a right to vote to amend the plan, approve it or reject it. Voting interests are equal to the value of the amount owed to creditors. Local banks, who are owed a total of R16.4 billion secured by government guarantees, form the largest voting bloc.
