SAA BRPs expected to hold creditors’ meeting on changing restructuring plan
They said all conditions for a rescue plan for the airline were met, apart from the letter required by lenders from the government.
JOHANNESBURG – South African Airways’ (SAA) business rescue practitioners (BRPs) have called a creditors’ meeting for Friday to consider amending the SAA restructuring plan and give the government until Monday to provide a guarantee confirmation letter.
They said that all the conditions for a rescue plan for the airline were met, apart from the letter required by lenders from the government.
The business rescue plan set out that about R10.4 billion was needed for the embattled airline, with the intention to change SAA into a new entity.
A letter signed by Public Enterprises Minister Pravin Gordhan and Finance Minister Tito Mboweni only indicated government support to “mobilise” funding to implement the plan.
However, there had been no official word on the funds and the BRPs wanted answers.
A deadline was set for Wednesday for proof of payment or commitment to pay. However, this deadline came and went, creating an open question about the way forward for the state-owned airline.
About R2.2 billion was allocated to voluntary severance and retrenchment packages. All involved are waiting for clarity.