Solidarity shoots down SAA business rescue plan

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Union says the radical changes needed to create a successful airline are not on the table

Another trade union represented at SAA has come out against the recent business rescue plan, arguing that if implemented the airline will once again be destined for liquidation or business rescue in the near future while wasting taxpayers’ money.

“All SAA stakeholders who are in the position to either support or reject a business rescue plan for SAA should realise that business rescue provides a better outcome than liquidation and should be supported for their collective interests,” it said. The department said the business rescue practitioners were expected to table a revised business plan on July 7, which will be voted on by creditors on July 14.

It said a business rescue plan that does not recognise the severe financial situation SAA finds itself in, or the huge effect of the pandemic on the chances of a rescue being successful, will be unimplementable. If the plan is rejected and an alternative not proposed SAA will be placed in provisional liquidation.

 

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