JOHANNESBURG - The business rescue announced for cash-strapped national carrier South African Airways will allow it to continue operating in an orderly and safe manner and keep planes and passengers flying under the direction of a rescue practitioner, public enterprises minister Pravin Gordhan said on Thursday.
SAA said its board of directors had - after consultations with the shareholder the government - resolved to place the company into business rescue in an effort to find a solution to its financial challenges.
In a separate statement, Gordhan said existing lenders to SAA would provide R2 billion as post commencement finance (PCF) guaranteed by the government and repayable out of future budget appropriations in order for the business rescue process to commence and to enable SAA to continue operating.
The government though the National Treasury would provide an additional R2 billion of PCF in "a fiscally neutral manner", he added.
In its own statement, SAA said it was seeking to minimise the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully.