News Formal

Business Maverick: SAA rescue plan to be implemented but big questions still hang over funding for the airline

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 84%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Most of the conditions for implementing SAA’s business rescue plan – including how the restructuring of the airline will be funded – have been met, the airline’s business rescue practitioners have declared. There isn’t any indication yet about how the government will raise more than R10bn to fund SAA’s urgent cash needs.

The SAA business rescue practitioners have moved to finalise and implement a plan to restructure the state-owned airline, even though there isn’t yet a firm decision by the government on how SAA’s urgent funding requirements will be met.

The implementation of the rescue plan has been bedevilled by delays since SAA was placed under business rescue on 5 December 2019 because it did not have working capital to fund operations. The amount owed to banks is backed by government guarantees – meaning the fiscus or the taxpayer will be on the hook for repayments if SAA cannot repay the money. The fiscus will likely step in as SAA is financially distressed.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cash-strapped Comair requests deadline extension of publication of business rescue planBusiness rescue practitioners of the owner of Kulula.com and British Airways want to be given a deadline extension regarding the publication of a business rescue plan. The business rescue practitioners of cash-strapped Comair confirmed this in a media statement sent on Tuesday evening, saying this would give them enough time to negotiate short-term bridging funding.
Source: SowetanLIVE - 🏆 13. / 63 Read more »

Business Maverick: IMF Grants $4.3 Billion to South Africa in Biggest Virus LoanThe International Monetary Fund approved $4.3 billion in emergency funding for South Africa, the largest emergency disbursement for any country yet to assist with fighting the coronavirus pandemic.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Old Mutual to Move Zimbabwe Listing as Currency War EscalatesOld Mutual Ltd. is poised to stop trading its shares on the Zimbabwe Stock Exchange, the latest step in the government’s efforts to bring order to its chaotic foreign-exchange market.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK ANALYSIS: Dollar’s diminishing safe-haven status is a benefit to emerging marketsInvestors have been rushing to the sanctuary of gold and alternative safe-haven currencies instead of the dollar, which reached a 22-year low. Low US bond yields, political uncertainty ahead of the elections and concern about the difficulties the US is having in getting the pandemic under control are all weighing on the greenback.
Source: dailymaverick - 🏆 3. / 84 Read more »