SAA is in business rescue: what it means, and what next

, which came into effect in 2011. It indicates what needs to be applied when a business is in distress.The aim is to address distress in a business, when it’s not performing. Distress is normally identified when a company is no longer profitable, when it’s not a going concern anymore, when it has major problems. Like a sick person. You have to see a doctor when you’re sick.

It’s understandable that the government is trying to avoid liquidation: if SAA went the route of liquidation rather than rescue, the government would be forced to repay creditors. But in a rescue situation, a moratorium is put on relief payments. Creditors don’t have to be paid immediately. It gives a company a bit of a lifeline while the rescue practitioner works out a plan for the business.The act makes a provision for when a business is in financial distress.

The process of appointing the rescue practitioner can take up to five days. Once appointed, the person takes full charge of the company. That means they have the power to make all decisions, including running the company’s finances. They are obliged to support the rescue practitioner in whatever he or she requires. Their co-operation is very important. For example, they must supply him or her with information. But they no longer have any powers to make decisions. They will still be paid – though, depending on the plan, this is where cuts are usually made immediately. But this will depend on the rescue practitioner and the plan.Employees are unfortunately very vulnerable during the process.

How will this effect FlyMangoSA

so Pres is in Ghana? to do investment there? while we need jobs & investment & sorting out at home? Africa Infrastructure development is costing us MONEY & LOST ECON OPPORTUNITY. AFRICA STRUGGLE TAX is destroying us. Nations outside Africa actually helped more in the struggle

put it on olx, the owner has no use for it

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