SAA Business Rescue Practitioners granted extension to submit draft Business Rescue Plan
CAPE TOWN – The South African Airways (SAA) Business Rescue Practitioners (BRPs) Siviwe Dongwana and Les Matuson were on Friday granted approval to extend the publication of the state-owned airline’s Business Rescue Plan to 31 March 2020.
The BRPs requested the extension on February 26 via an emailed letter that asked creditors to vote for or against the extension and email their votes by close of business on 27 February 2020, which was approved by the requisite majority of creditors holding voting interests in the company.
The practitioners and SAA are in the process of finalisation of the proposed restructuring plan and the steps required to implement the proposed restructuring plan which will be encompassed in the draft Business Rescue Plan.
“We are still in the process of finalising the steps to implement the proposed restructuring option as well as the anticipated effect the plan will have on stakeholders, including the estimated return to creditors,” the BRPs said.
“We believe that a further extension of one month will allow for sufficient time for us to finalise the draft plan, given the complexity and extent of engagement that is required in a business of this size. We then intend to communicate the plan to the creditors committee, the employees committee and the shareholder, prior to the actual public publication of the Plan.”
The BRPs said in a statement that the employees committee, creditors committee and the Department of Public Enterprises would be provided with an opportunity to make representations to the practitioners regarding the draft Business Rescue Plan and to consult the practitioners in respect of such representations.
After the practitioners have considered and discussed the aforesaid representations the final draft of the Business Rescue Plan would be published by the practitioners and will be voted upon by creditors at a meeting convened for this purpose. The meeting of creditors to decide whether to approve the Business Rescue Plan must be convened within 10 days of the date of the publication of the Business Rescue Plan.