Administrators at struggling South African Airways (SAA) have called a creditors’ meeting which will start shortly
after the government missed a deadline to make funding available for the airline’s restructuring plan.
The administrators took control of state-owned SAA in December last year after almost a decade of financial losses.
They then published a rescue plan in June following repeated delays and wrangling over SAA’s future.
Of the more than R10 billion needed, around R2.8 billion is required for initial working capital.
The meeting will discuss the funding issue and the proposed future of the airline.
SAA’s fate is discussed in the video below:
Earlier, the Department of Public Enterprise called for patience from all South African Airways (SAA) workers, unions and creditors over funding.
The department says it is aware of a planned picket by National Union of Metal Workers of South Africa (Numsa) and South African Cabin Crew Association (Sacca) outside SAA headquarters on Friday in Kempton Park on Gauteng’s East Rand.
The unions are demanding that funding for SAA be made available.
SAA is in danger of liquidation as a creditors’ meeting is also set for Friday morning while government considers several proposals from potential strategic equity partners.
In the video below, Numsa says it will take legal action to prevent the liquidation of SAA:
