SAA business rescue process completed
SAA has been handed back to its board and executives after business rescue practitioners (BRPs) announced on Friday it had ended the business rescue process.
In a statement, the BRPs said they have finished their work after 17 months.
SAA was put into business rescue in 2019 and Parliament had two months ago asked the BRPs about details in exiting the process.
They initially said this would be done at the end of March. But on Friday, they announced the process has now come to an end.
The BRPs said the government had initially injected R10.3 billion into the business rescue process.
But to date, only R7.8bn has been received from the government.
“The business rescue plan was voted for and approved by creditors on 24 July, 2020, with a R10.3bn funding required for its implementation. To date, R7.8bn has been received from government for the implementation of the plan.
’’A significant portion of the debt that hamstrung SAA has since been compromised and the balance thereof transferred to the receivership, a vehicle specifically intended to ensure the debt is paid over the next three years,” said the BRPs in a statement.
In a presentation to the Standing Committee on Public Accounts a few months ago, the BRPs said some of the money has been used to pay voluntary severance packages and other funds were to pay salaries to the remaining staff.
The airline has been battling for a number of years with huge losses resulting in large bailouts.
Business rescue practitioner Siviwe Dongwana said they were now handing back the process back to the board and executives of the national carrier.
In the last few years, the government has pumped more than R20bn in bailouts to SAA and the airline incurring losses of more than R32bn over the years.