SAA rescue plan ready for implementation: BRPs

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The South African Airways (SAA) Business Rescue Practitioners say they will not be having a meeting this week with creditors as government has met all its requirements for the restructuring of the airline.

In a statement, the BRPs say the revised Rescue Plan is now scheduled to go ahead.

The practitioners were awaiting a confirmation letter from government that it would find financial backing for the national carrier that has suffered years of corruption and maladministration.

The administrators took over SAA in December after almost a decade of financial losses and published their restructuring plan for the airline last month, after repeated delays and fierce wrangling over the airline’s future.

Their plan envisages scaling back the airline’s fleet and shedding jobs, but it needs at least R10 billion ($604.81 million) of new funds to work and the government has not yet said where it will find the money. “We are currently attending to and finalising the remaining outstanding administrative issues before filing a notice of substantial implementation,” the administrators say.

In the video below, SAA creditors vote in favour of deadline extension:

Comair seeks extension

Meanwhile, Comair Business Rescue Practitioners have asked creditors to extend the date for the publication of their business rescue plan until the 28th of next month to negotiate short-term bridging funding.

Creditors have until noon on Wednesday to grant the extension. – Additional reporting by Reuters