SAA administrators call for urgent creditor meeting as funding not received yet
JOHANNESBURG - Administrators at state-owned South African Airways have called a creditor meeting for Friday, 18 September, as funding for the airline's restructuring has not been received as anticipated, the administrators said on Thursday.
The creditor meeting will be convened at 11:00 local time on Friday to discuss the funding issue and the proposed future of the company, the administrators said.
Last Friday, it appeared that [lans for the new-look SAA was heading for more turbulence as business rescue practitioners (BRPs) gave the government until this week to fund the rescue process or face liquidation.
SAA rescuers Les Matuson and Siviwe Dongwana last Thursday warned that the government had until this week to determine whether to continue with rescuing the airline as its existing funds were near depletion.
“The remaining portion of the short-term funding required by the company has not yet been made available to the company,” the rescuers said.
“The BRPs have been engaging tirelessly with the government to ensure that this funding is made available to the company timeously.”
SAA has been finalising the termination of 33 of the 40 aircraft leases by the end of September to ensure that it does not have overly burdensome and unsuitable contracts.
In terms of the SAA rescue plan, the airline needs at least R10 billion in short-, medium- and long-term funding for it to take to the skies again.
REUTERS / BUSINESS REPORT