SAA has enough cash to pay January wages, say business rescue specialists

Published Jan 24, 2020

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Johannesburg - South African Airways (SAA)

has saved enough cash to pay January salaries, specialists

appointed to try to turn around the struggling airline said on

Friday.

State-owned SAA is fighting for its survival after it

entered a form of bankruptcy protection last month and cancelled

some flights this week because of cash shortages.

"The business rescue practitioners and management have taken

various actions to ensure that cash is conserved. As a result we

have sufficient funds to pay January salaries," business rescue

specialists Les Matuson and Siviwe Dongwana said in a statement.

Matuson and Dongwana were promised R4 billion ($279

million) of funding from lenders and the government to sustain

rescue efforts for SAA but only received the 2 billion rand from

lenders.

Government officials are holding urgent meetings, trying to

find a way to raise the promised funding for SAA quickly without

exacerbating the country's budget deficit.

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