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· The Business rescue practitioners of South African Airways (SAA) informed affected parties in a notice on 28 July that all the conditions in the business rescue plan had been fulfilled
· The practitioners also indicated that they were finalizing remaining outstanding administrative issues before filing a notice of substantial implementation of the rescue process
The Business rescue practitioners of South African Airways (SAA) informed affected parties in a notice on 28 July that all the conditions in the business rescue plan had been fulfilled. The practitioners also indicated that they were finalizing remaining outstanding administrative issues before filing a notice of substantial implementation of the rescue process. That is the normal process mandated by Companies Act.
Despite these tall claims, there has been no indication from the rescue practitioners, the Department of Public Enterprises or National Treasury whether necessary funding to implement the rescue plan has been obtained or “mobilised” as committed to by the DPE and Treasury in a written communication. They also deposed before the court that the committed resources would be mobilized outside the purview of the budgetary allocation. However, the letter of commitment did not indicate any time frame for mobilizing the resources.
Many attribute the inaction on the part of the government to commit the resources or even pointing out the source or sources they would tap is a testimony of the project being hit by delay or willful neglect.
The rescue plan requires about R10.3 billion in additional funding. It immediately requires about R800 million for post-commencement creditors, about R2.2 billion for voluntary severance and retrenchment packages as well as about R2 billion for working capital.
In the proposed restructure, 1 000 employees will be retained and 1 000 will be placed in a temporary training lay-off scheme for 12 months. Voluntary retrenchments are provided for in terms of the plan too – if the necessary funding becomes available. People who are knowledge about the deal say that 21 management positions, 449 pilots; 953 cabin crew and 1 296 ground staff might be retrenched.
