Today's Labour News

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saa thumb medium95 76Fin24 reports that the business rescue practitioners (BRPs) of South African Airways (SAA) announced on Tuesday that all the conditions in the embattled airline's business rescue plan have been fulfilled.  

There was, however, still no indication of where the R10.3 billion funding to implement the rescue plan would come from.  So far government has only committed to "mobilising" funds.  The most crucial amount to start off with would be about R800 million for post-commencement creditors, about R2.2 billion for voluntary severance and retrenchment packages and about R2 billion for working capital.  The BRPs said in a letter to affected parties that they were currently finalising remaining outstanding administrative issues before filing a notice of substantial implementation of the rescue process as required by the Companies Act.  Peter Attard Montalto of Capital Markets Research at Intellidex said he remained "deeply sceptical" that anything would emerge of any meaningful size or scope.  "Whilst the tortuous process of the business rescue practitioners now comes to an end, the airline still has no money and unions are getting restless.  Attention will now turn to the fact that air travel will be severely restricted and reaching break-even in three years will take major additional funding that banks and others will be unwilling to provide," he observed.

  • Read the original of the above report by Carin Smith at Fin24

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