SAA rescue practitioners set deadline for government to produce promised R10bn

By ANA Reporter Time of article published Sep 10, 2020

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Cape Town - The business rescue practitioners of South African Airways said on Thursday it would need government to make available agreed short-term funding by next week, failing which they may be unable to continue the process.

Les Matuson and Siviwe Dongwana in a statement described the financial situation of the national carrier as "dire".

"The issue that the BRPs have to deal with at this point in time, concerns the existing funds which are available for operational expenditure, which are near depletion and thus the availability of the requisite funding to the company during the course of next week will determine whether the business rescue proceedings can continue."

The pair said there had been continuous engagement with government as the shareholder.

However, to date none of the R10.3 billion in short-term funding has been forthcoming.

SAA needs R2.2 billion of this sum to pay out the voluntary severance packages of some 3,000 staff.

Matuson and Dongwana said they would inform affected parties on September 17 whether there has been any progress in negotiations about the funding.

If there is no firm indication that funding is forthcoming, a meeting of creditors would be called for the next day.

"Should the BRPs not be satisfied that sufficient progress has been made for the timeous advancing of the funding, a meeting of creditors will be convened on 18 September 2020 at 11h00 to engage with affected persons on this issue and the proposed way forward taking into account all relevant factors.

Finance Minister Tito Mboweni clarified in court papers in July that government had not committed to advancing the required funding but rather to "mobilising" to secure it, possibly from strategic equity partners.

African News Agency (ANA)

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