SAA exits business rescue after 18 months under administration

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The Department of Public Enterprises has welcomed the announcement by South African Airways (SAA)’s business rescue practitioners that the airline is no longer under business rescue.

The national carrier was placed in business rescue 18 months ago in a bid to save the bankrupt national carrier from total collapse. The COVID-19 pandemic added to its financial woes, forcing it to ground all its aircraft.

In a statement, its Business Rescue Practitioners say the airline is now solvent and that its operations have been handed back to its board and executive team after they filed a notice of “substantial implementation” of a business rescue plan with the Companies and Intellectual Property Commission.

They say the Board and management will be developing and implementing an interim business plan to sustain the operations while a strategic equity partnership is being finalised.

To date, R7.8 billion has been received from the government to implement the interim plan. The Department of Public Enterprises has welcomed the announcement.

“Government is in the final stages of negotiations with the preferred SEP, and a purchase and sale agreement should be concluded in the next few weeks. This will enable capital and much-needed technical and commercial expertise to be brought in to ensure a competitive flag carrier emerges,” says Richard Mantu, Department Spokesperson.

In conversation with SAA’s new interim CEO Thomas Kgolo

Source: sabcnews