DPE favours business rescue plan over liquidation for SAA

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JOHANNESBURG - The Department of Public Enterprises is warning South African Airways employees, labour unions and creditors that a business rescue plan will be a better option for the airline than li

quidation.

In a statement on Thursday morning, the department stresses that if SAA was to be liquidated, it would potentially lead to even more financial implications for employees. "All SAA stakeholders who are in a position to either support or reject a business rescue plan for SAA should realise that business rescue provides a better outcome than liquidation and should be supported for their collective interests."

It added that: "For employees, the liquidation of SAA means they would receive a maximum of R32,000 per staff member, regardless of years of service, to the extent that there are funds available. They will only receive payment once the final liquidation and distribution account has been approved, which can take up to 24 months."The rescue plan states that 15 July is the deadline for government to find more than R10 billion to fund the ailing airline to prevent it from being liquidated.

 

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