Compromises reached with creditors,lessors resulted in debt reduction: SAA

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South African Airways (SAA), says its solvency and liquidity has been restored.

The airliner briefed the Public Enterprises oversight committee on its readiness to take to the skies in 22-days after undergoing business rescue since December 2019.

Interim CEO, Thomas Kgokolo says they will start with the Johannesburg- Cape Town route and later go regional.

He says the airliner will now operate with a significantly reduced staff and fleet.

Kgokolo says compromises were reached with creditors and lessors resulting in a significant reduction in debt.

“The legacy lender debt of about R4.1 billion was repaid in July 2021 from funding received from the fiscus and we are very thankful to parliament and to the cabinet to assist us with that particular payment that was done. R1.3 billion remain outstanding to lenders and is due for payment sometime next year in August,” says Kgokolo.

VIDEO: Interim SAA Chief Executive Thomas Kgokolo on the airliner resuming operations in September 2021:

In July, the Companies Intellectual Property Commission (CIPC) said it was still waiting for SAA to update its registration and to amend its Memorandum of Incorporation.

“In terms of our internal workflow systems we have not received a change in the MOI for SAA, in terms of the Companies Act any change to the directorship of any companies requires that the company must inform the CIPC in ten working days after the change has occurred who the person is and their address. In the case of SAA after it exited business rescue their minor changes but that related to non-executive directorship, there has not been a big shift, notify us accordingly,” says Senior Manager at the CIPC, Adv Christa Klokow.

VIDEO: SABC’s Tshepo Mongoai provides details:

In June, Public Enterprises Minister Pravin Gordhan announced equity partner for South African Airways:

Additional reporting by Tshepo Mongoai.