Clarity on SAA restructuring expected soon

The Public Enterprises Department said that efforts to finalise the business rescue process and a decision on the sources of funding would be announced soon.

JOHANNESBURG – South Africans should have clarity soon on the restructuring of South African Airways (SAA).

The Public Enterprises Department said that efforts to finalise the business rescue process and a decision on the sources of funding would be announced soon.

It said that transaction advisor RMB was assessing unsolicited interest for a new SAA from private sector funders and equity investors.

The business rescue practitioners said that the process was on track.

The SAA business rescue practitioners said that they’d been finalising two outstanding issues. These include the termination of aircraft leases and the procurement of funding in terms of the plan.

The airline has entered into termination agreements with 33 of the 40 aircraft leases and the process involving the remaining aircraft will hopefully be completed by the end of this month.

The practitioners said that short-, medium- and long-term funding was needed but government had already afforded R9.3 billion for the repayment of SAA’s debt.

However, the remaining short-term funding has not yet been made available by government and talks are continuing.

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