South African Airways (SAA) Business Rescue Practitioners have confirmed that a further extension for publication of their proposed restructuring plan from 28 February to 31 March 2020 has been approved by the majority of creditors.
In a statement, the practitioners say they are in the process of finalising the plan. They say the employees’ committee, creditors committee and the Department of Public Enterprises will be provided with an opportunity to make representations.
Earlier this week, the National Union of Metalworkers of South Africa threatened to approach the courts for the second time to demand the plan be published.
SAA’s Business Rescue Practitioners say after they have considered and discussed the representations by the specified committees and the Public Enterprises Department, the final draft of the Business Rescue Plan will be published by the practitioners and will be voted upon by creditors at a special meeting.
The Practitioners say the meeting of creditors to decide whether to approve the Business Rescue Plan will be convened within 10 days of the date of the publication of the Business Rescue Plan.
Delivering the Budget Speech earlier this week, Finance Minister Tito Mboweni has expressed optimism about the process that is currently happening at the SAA.
“It is the very sincere hope of many that this intervention will lead to a sustainable airline that is not a burden to the fiscus.”
R16.4 billion has been set aside over the medium-term to service the airline’s debt.
In the video below, Minister Tito Mboweni, says the government hopes the intervention will lead to a sustainable airline that is not a burden to the fiscus: