A majority of SAA creditors have voted in favour of implementing a plan to restructure the troubled airline and momentarily saving it from the worst-case scenario of liquidation.
At the same meeting, acting director-general for the Department of Public Enterprises, Kgathatso Tlhakudi, confirmed the appointment of Philip Saunders as the SAA interim CEO. The department is the sole shareholder of SAA. A restructured SAA will still depend on public finances, as a total of R26.7-billion – of which R10.3-billion is new money – will be required to settle the airline’s debt, to fund the restart of its operations, and pay retrenchment packages to workers and creditors, whose debt is not guaranteed by the government, including aircraft lessors.
This will likely pit Treasury officials and Finance Minister Tito Mboweni against Public Enterprises Minister Pravin Gordhan, who wants SAA to be rescued at all costs.
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86% of SAA creditors approve revised business rescue plan, new CEO appointedFollowing 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.
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