SA GOVERNMENT IN SAA FUNDING NO SHOW

SA GOVERNMENT IN SAA FUNDING NO SHOW

A day after announcing the resumption of international flights to South Africa, the South African Airways Business Rescue Practitioners have announced that the required R10b funding from the government has not been availed.

A notice released by the practitioner said: “The BRPs hereby advises affected persons that the anticipated funding has not been received by the Company in accordance with the commitment from Government to provide funding for the restricting of the Company and the implementation of the business rescue plan.”

“Accordingly, a meeting of creditors will be convened on 18 September 2020 at 1100hrs to engage with affected persons in this issue and the proposed future of the Company taking into account all relevant factors,” the notice reads.

Meanwhile the South African Department of Public Enterprises is closely monitoring the issue. “The Department of Public Enterprises is aware of the creditors meeting called to discuss the future of the business rescue plan for South African Airways and the protests scheduled to be held outside the airline’s office on Friday.”

The DPE added that: “At the same time the government is working with transactional advisors to assess proposals from several potential strategic equity partners for the airline”. Ethiopian Airlines is being talked about as a potential partner for the airline.

During the lockdown period, South African Airways has been performing both cargo and repatriation flights across the world. SAA performed a first for the airlines with a repatriation flight from Johannesburg to Christchurch in New Zealand using an Airbus A340-600.

#SouthAfricanAirways #BusinessRescue #JustAfricanAviation

Copyright 2020 Just African Aviation Pty Ltd, Permission to use quotations from this article is granted subject to appropriate credit being given to www.justafricanaviation.com as the source.

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