SAA BRPs tell court to lift interdict on retrenchments as plan not published
The practitioners said that due to a lack of cash flow for SAA and with no cash injection coming from government or potential investors, the whole rescue process would fail.
JOHANNESBURG - The business rescue practitioners at South African Airways (SAA) have told the Labour Appeals Court that since there was no rescue plan published, the interdict on retrenchments needed to be lifted or the process would have to start from scratch with a two-month consultation period.
The practitioners said due to a lack of cash flow for SAA and with no cash injection coming from government or potential investors, the whole rescue process would fail.
The practitioners were in court on Tuesday appealing an earlier judgment that halted planned layoffs at SAA without a business rescue plan.
SAA has been in business rescue for six months with the process halted by ongoing delays and extensions in finalising a business plan.
The practitioners insist that the situation is dire at SAA and any further delays could see the airline placed under provisional liquidation.
But worker unions disagree with this and say no retrenchments could happen until a business rescue plan had been voted on by creditors.
However, the business rescue practitioners argue that widespread retrenchments are inevitable.
The plan drawn up so far proposes that only 1,000 jobs out of the 4,500 at SAA will be saved as the process of winding down the business begins.
Government has stated that it ultimately intends launching a new airline.