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BusinessLive reports that creditors of SA Airways (SAA) have voted to set a new deadline for the finalisation of the state-owned airline’s business rescue plan.
The extension became necessary after one of the conditions precedent for the rescue to be successful was not met by the deadline of 22 July. The outstanding condition relates to a guarantee confirmation letter from the government to lenders setting out the repayment of debt. Banks are owed R9.2bn plus interest in legacy debt and R5.5bn for the post commencement financing of the rescue. At a meeting on Friday, the business rescue team told creditors that the finalisation of the letter was imminent as there was only one issue still to be ironed out. Lawyers for the Department of Public Enterprises, Treasury and the business rescue practitioners (BRPs) were said to be working on the form of the letter. All other conditions had been met within the time period, they said, including the condition that government “provide the requisite funding” for the new SAA. The ministers of public enterprises and Treasury have said they “will mobilise funding”, but there is no indication yet of the source of the money. Should the final condition be met by the end of Monday, then the BRPs will hand the company back to the board and management of SAA.
- Read the full original of the report in the above regard by Carol Paton at BusinessLive
- Read too, Banks want their SAA money back, at City Press
- And also, SAA needs aircraft but can’t buy or lease them, at The Citizen
Get other news reports at the SA Labour News home page