86% of SAA creditors approve revised business rescue plan, new CEO appointed

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Following a creditors meeting held on Tuesday, 86% of South African Airway's creditors have voted in support of the revised business rescue plan. Phillip Saunders has been appointed the new interim CEO.

Following a creditors meeting held on Tuesday, 86% of South African Airway's creditors have voted in support of the revised business rescue plan.

The new plan will need financing of over R10 billion from the government to see it through. Most of the financial expenditure will go into paying retrenchment/severance package costs for employees and liabilities. Minister of Public Enterprises Pravin Gordhan and the ANC have shown their support behind the formation of a new airline which is envisioned to emerge from the rescue plan.

"Today’s decision by South African Airways creditors to vote in favour of the revised business rescue plan was a self-interested ‘grand financial heist’ to reap millions of rands in taxpayer’s money while saddling the fiscus with an expensive ‘dud’ disguised as a new airline.

 

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