SAA in line for R4bn boost as it enters business rescue process, says Pravin Gorhan | IOL News

  • 📰 IOL
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

SAA is likely to get a R2bn boost from the government and another R2b from existing lenders as it enters rescue proceedings, Public Enterprises minister Pravin Gordhan said.

Cape Town - South African Airways is likely to get a R2 billion boost from the government and another R2 billion from existing lenders as it enters rescue proceedings from December 5, a minister said on Thursday.

"It must be clear that this is not a bailout. This is the provision of financial assistance in order to facilitate a radical restructure of the airline," Minister of Public Enterprises Pravin Gordhan, said in a statement. SAA, which has not made a profit since 2011 and has depended on government bailouts, suffered an employee strike last month that forced it to cancel hundreds of flights and pushed it to the brink of collapse.

On Wednesday, a deputy minister, declined to be identified due to the sensitivity of the matter, told Reuters he had received a letter from the secretary of the cabinet which said President Cyril Ramaphosa had called for a change of approach on SAA and instructed the government to put the airline in a "voluntary business rescue process".

Outlining what is expected from the process - which Gordhan described as the "optimal mechanism" to restore confidence in SAA as it seeks a future equity investor - Gordhan said the R2 billion provided by existing lenders will be guaranteed by the government and repayable in future budgets.

 

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

In other words, Gorhan is a liar ?

Unorthodox business practices for an insolvent company. Told y’all a tax bailout is coming. Fools.

Thank you for taking some action. I hope it works out, we need our economy to rise.

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:

 /  🏆 46. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines