SAA's rescue practitioners granted another month to finalise plan
SAA's business rescue practitioners have been granted another month.
Siviwe Dongwana and Les Matuson are now expected to publish their proposed business rescue plan on March 31, instead of Friday.
“We are still in the process of finalising the steps to implement the proposed restructuring option, as well as the anticipated effect the plan will have on stakeholders, including the estimated return to creditors,” Dongwana and Matuson said in a statement.
“We believe that a further extension of one month will be sufficient for us to finalise the draft plan, given the complexity and extent of engagement that is required in a business of this size. We then intend to communicate the plan to the creditors' committee, the employees' committee and the shareholder, prior to the public publication of the plan.”
SAA has made net losses of more than R32bn since 2008 and was recently placed in business rescue.
The national carrier recently stopped flying to several domestic and international destinations in an attempt to reduce operational costs as it battled a cash crunch.
In the budget presented to parliament this week, finance minister Tito Mboweni said the government would, in the next three years, allocate R16.4bn to SAA to help it meet its financial obligations, including debt repayments.