‘Reasonable prospect’ of success for SAA, say business rescue practitioners

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The two told creditors that immediate liquidation would see concurrent creditors receiving nothing

There is a reasonable prospect of the successful business rescue of SAA despite the inevitable risks and challenges involved, the airline’s joint business rescue practitioners told creditors at the first creditors’ meeting on Friday.

Business rescue aims to facilitate the rehabilitation of a company that is financially distressed by placing it under tMatuson and Dongwana based their view of likely success on the availability of further funding from the government and the ongoing support of all the stakeholders, including the government, employees, trade unions and trade suppliers.

“SAA leases most of the aircraft and, accordingly, in a liquidation there will be limited assets that can be realised for distribution to creditors. The preliminary view is that after the allocation of the distributable proceeds to preferent creditors , no funds will be available for distribution to concurrent creditors.

Creditors unanimously approved a request to give Matuson and Dongwana until February 28 instead of the legislated 25 days after their appointment — which expires on January 13 — to come up with a plan. Matuson said that he and Dongwana are evaluating various scenarios and the funding requirements for each one of them. If possible, they will publish the plan before February 28.

 

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