Business rescue will allow SAA to continue operating in orderly, safe manner - Gordhan | IOL Business Report

JOHANNESBURG - The business rescue announced for cash-strapped national carrier South African Airways will allow it to continue operating in an orderly and safe manner and keep planes and passengers flying under the direction of a rescue practitioner, public enterprises minister Pravin Gordhan said on Thursday.

SAA said its board of directors had - after consultations with the shareholder the government - resolved to place the company into business rescue in an effort to find a solution to its financial challenges. In a separate statement, Gordhan said existing lenders to SAA would provide R2 billion as post commencement finance guaranteed by the government and repayable out of future budget appropriations in order for the business rescue process to commence and to enable SAA to continue operating.

The government though the National Treasury would provide an additional R2 billion of PCF in "a fiscally neutral manner", he added. In its own statement, SAA said it was seeking to minimise the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully.

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.

DA pleased SAA will be put into business rescue | IOL Business ReportPravin Gordhan said that the next best option for embattled the state-owned South African Airways is to be placed into business rescue. Of course they will be, it’s been their tune for over a decade akere Can it be that afriforum “convinced”Luthulihouse ? WHO is pleased?
Source: IOL - 🏆 46. / 51 Read more »

Gordhan: Business rescue will restore confidence in SAAPublic Enterprises Minister Pravin Gordhan has announced that the SAA board has adopted a resolution to place the company into business rescue. He says the decision is supported by government and will help restore confidence in the airline Pravin; for 30 years you are part of government, and look where we are today. You are not the right person to lead. Time to step aside and make room for new strategic thinkers with a vision to leverage the African open skies agreement. SouthAfrica Lets sell to Virgin and get it over with. Lay of 5000 bloodsucking inefficient and untrained louses When will SA realise that we are run by thugs and mapantinti? Mafias and Dons? Anc is doing what they promised whites pre94. We're just spectators. Everything was decided long ago.
Source: City_Press - 🏆 7. / 72 Read more »

Government to place ailing SAA under business rescueThe move potentially draws a line under the crisis — if a rescuer can be found.
Source: mailandguardian - 🏆 2. / 92 Read more »