SAA creditors back business rescue, financing details to follow

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South Africa News News

SAA’s creditors have given the stricken state-owned airline’s revised business rescue plan the green light, with 86% of them voting in favour of it.

Dongwana said the practitioners welcome the “approval of the business rescue plan with an overwhelming majority of those who voted”.

Earlier Tlhakudi said that while the restructuring project of SAA had been “reflected in some quarters as a vanity project of the department of public enterprises or that of National Treasury, this is far from the truth”.He said the provision of essential air services for the repatriation of South Africans stranded due to the Covid -19 pandemic and the flying of critical medical supplies was made possible by SAA.

Thlakudi said the integration of the region was also dependent on an “effective air route network due to the large distances between our economic centres”.He said the national economy was also dependent on international investment and trade and air connections were “critical in ensuring that South Africa remained in the sights of foreign investors”. ​

The department believed the"favourable vote is a much better outcome for creditors and SAA employees than liquidation", and said government was confident the implementation of the business rescue plan will balance the rights and interests of all parties.

 

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