SAA gets R3.5bn emergency funding from state-owned bank | IOL Business Report

Johannesburg - Cash-strapped state carrier South African Airways will receive R3.5 billion of emergency funding from the government-owned Development Bank of Southern Africa, the airline's business rescue practitioners said on Tuesday.

SAA is fighting for its survival after it entered a form of bankruptcy protection in December and cancelled some flights because of cash shortages. "We can confirm that the Development Bank of Southern Africa has committed R3.5 billion in funding to the SAA Practitioners, with an immediate draw-down of R2 billion," the team overseeing SAA's bankruptcy-protected restructuring said.

"Funding for the restructuring phase after the business plan is adopted is being considered by potential funders," the practitioners said. SAA has not made a profit since 2011, surviving instead on more than R20 billion in bailouts over the last three years. That has put the country's credit rating and investor confidence under increasing pressure.

Still no financial statements. Where is all this money going? What are the main cost drivers at SAA? Who are the beneficiaries of these contracts? Is that why they refuse to release financial statements and no one holds them accountable? Is this still Myeni's fault?

Not too sure whether the provision of finance to SAA is within the mandate of DBSA? It’s primary purpose is to promote economic development and growth and promote regional integration through infrastructure finance and development. Possible infringement of PFMA?

I think they are just going to plough through this in less than a year and then we are back to where we are now. Unless they can reduce cost, nothing will change. We will have to bail another 3.5 B next year. 😡

What a waste of money... I am sure that they could have put it to better use.

Never heard of this bank👈🏻

Last year they get 2.5bn or some amount for same reason😧😅😅🌈😱

What could that money have saved at Eskom?

Rescue...... We as South Africans will need to be rescued after this.... Worse decision ever made...

? HOW DO YOU PAY IT BACK

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SAA to get R3.5 bln emergency funding from Development Bank - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.SAA is fighting for its survival after it entered into a form of bankruptcy protection in December. How many billions do they get in bailouts in a year? Wow thank you we won't see any retrenchment happening there... We can not allow SAA to fail and bailout is much appreciated. Again SOE are the wheels of SA Economy but bailout need to come with accountability. SAA need to have a crystal strategic plan on how will sustain itself, we need an accountable Board, Executive and Management.
Source: SABC News Online - 🏆 32. / 51 Read more »