SAA may have to apply for liquidation, says business rescue practitioners
SAA said it didn’t have enough money to continue paying salaries beyond this month.
JOHANNESBURG - South African Airway (SAA)’s business rescue practitioners on Thursday said if they could not reach an agreement with unions about the termination of workers employment contracts, they would have to apply to have the airline liquidated.
SAA said it didn’t have enough money to continue paying salaries beyond April.
This after government rejected the embattled airline's request for a R10 billion bailout.
SAA is currently under business rescue and business rescue practitioners Les Matuson and Siviwe Dongwana said the airline could not survive beyond April.
They say SAA either had to go into forced liquidation or a winding down of the state-owned entity.
SAA said because of the current lockdown and banning of travel, it was unable to make money.
This includes the termination of all of its employees provided they accept the proposal by the practitioners.
SAA said it would then have to sell its assets and the money made would be used to pay creditors and the employees' severance packages.
The airline said it had presented the offer to unions and was expecting an answer by Friday.