SAA liquidation more devastating for workers than business rescue

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The Department of Public Enterprises has urged workers unions at SAA to vote in favour of the airline’s business rescue plan in a bid to avoid a drawn out liquidation process. busrep

The Department of Public Enterprises has urged workers unions at South African Airways to vote in favour of the airline’s business rescue plan in a bid to avoid a drawn out liquidation process.

A vote in favour of the plan by 75 percent of the voting interests would be required to carry the vote, It said that liquidation, the process of winding down the airline and disposing of its assets, would lead to financial hardship for employees and substantial undervaluation of assets. “During the drawn-out process, creditors would in all likelihood receive a negligible dividend after all secured and preferred creditors have been paid in the liquidation proceedings.in a higher return for creditors than would result in a liquidation situation.”

 

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