Today's Labour News

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saa thumb medium95 76BL Premium reports that the business rescue practitioners (BRPs) of SA Airways (SAA) intend to hand back the company by the end of March.

In a notice to affected parties on Friday, the BRPs said SAA was now “solvent and liquid” and they outlined all the outstanding matters to be completed by the end of March. SAA has been in business rescue since December 2019. In October 2020 it was allocated R10.5bn to fund the rescue process. Most of this has already flowed to SAA, with the rest to come as other obligations fall due later in 2021. To hand the company back and file a notice of “substantial implementation”, the BRPs said they needed to complete the payment of employees, or make provision for it; finalise payment of post-commencement creditors; and establish the receivership to manage these payments. However, it is not yet clear when SAA will resume flying. A travel advisory posted on its website recently said that flying was suspended until October. Resuming operations will depend on there being both a management team in place and sufficient working capital. At present there is almost no senior management in place and the only member of the executive committee is an acting CFO. The company does however have an interim board. The Department of Public Enterprises had previously stated that unless a strategic equity partner was secured, SAA would not have sufficient working capital to resume operations. The process of selection of a strategic equity partner or partners is being managed by the department.

  • Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)

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