Takatso Aviation indicated in a statement on Wednesday that it was underwhelmed by the provision of R1bn to SAA from finance minister Enoch Godongwana’s budget, saying it added uncertainty to the financing process for the embattled airline.
Godongwana announced that SAA would get a further R1bn in the 2022/23 financial year to help with outstanding obligations to creditors.
However, the airline has a historical debt of R13.5bn and the department of public enterprises estimated that it would need R3.5bn to cover its receivership liabilities.
Takatso, the strategic equity partner that has been in talks to take up 51% of the government’s shareholding in the national carrier, said while it would assess the impact of the 2023 budget’s allocation on the transaction, a partial fulfilment of the obligation was “not what Takatso Aviation had expected”.
“The budgeted R1bn will settle some, but not all, of the outstanding amount. It, therefore, falls short of what it would have taken for the government to completely clear this obligation, which is one of the conditions for the finalisation of the SAA transaction with the strategic equity partner,” the statement said.
Takatso Aviation director Lizeka Matshekga said SAA’s debt burden stemmed from its past financial distress and so the parties needed to assess whether a partial fulfilment of the government’s undertaking to clear the debt changed anything in Takatso’s financing process.
“The unease Takatso Aviation funders have with signing off on the release of the funds we’re mobilising for our R3bn commitment to SAA, while the outstanding BRP debt subsists, is an issue we have highlighted time and again,” said Matshekga.
The statement said Takatso would have ongoing engagements with the government in the coming weeks to assess the final settlement of its outstanding financing obligations emanating from the business rescue process.
“We also wish to emphasise that in the context of an ever-evolving market, time is of the essence if the parties to the agreement are to seize the moment characterised by a buoyant aviation sector,” the statement said.
Takatso underwhelmed by R1bn for SAA from Godongwana’s budget
Image: File/Alon Skuy
Takatso Aviation indicated in a statement on Wednesday that it was underwhelmed by the provision of R1bn to SAA from finance minister Enoch Godongwana’s budget, saying it added uncertainty to the financing process for the embattled airline.
Godongwana announced that SAA would get a further R1bn in the 2022/23 financial year to help with outstanding obligations to creditors.
However, the airline has a historical debt of R13.5bn and the department of public enterprises estimated that it would need R3.5bn to cover its receivership liabilities.
Takatso, the strategic equity partner that has been in talks to take up 51% of the government’s shareholding in the national carrier, said while it would assess the impact of the 2023 budget’s allocation on the transaction, a partial fulfilment of the obligation was “not what Takatso Aviation had expected”.
“The budgeted R1bn will settle some, but not all, of the outstanding amount. It, therefore, falls short of what it would have taken for the government to completely clear this obligation, which is one of the conditions for the finalisation of the SAA transaction with the strategic equity partner,” the statement said.
Takatso Aviation director Lizeka Matshekga said SAA’s debt burden stemmed from its past financial distress and so the parties needed to assess whether a partial fulfilment of the government’s undertaking to clear the debt changed anything in Takatso’s financing process.
“The unease Takatso Aviation funders have with signing off on the release of the funds we’re mobilising for our R3bn commitment to SAA, while the outstanding BRP debt subsists, is an issue we have highlighted time and again,” said Matshekga.
The statement said Takatso would have ongoing engagements with the government in the coming weeks to assess the final settlement of its outstanding financing obligations emanating from the business rescue process.
“We also wish to emphasise that in the context of an ever-evolving market, time is of the essence if the parties to the agreement are to seize the moment characterised by a buoyant aviation sector,” the statement said.
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