SAA restructuring plan set to take off

A restructured South African Airways is about to take off. This week, the business rescue plan was finally approved after all conditions, including a government guarantee to lenders, had been met.

JOHANNESBURG - A restructured South African Airways is about to take off.

This week, the business rescue plan was finally approved after all conditions, including a government guarantee to lenders, had been met.

READ: SAA rescue plan comes into operation

Finance Minister Tito Mboweni has said the R10-billion needed for the restructuring will not come from the fiscus.

The administrators took over SAA in December after almost a decade of financial losses and published their restructuring plan for SAA last month, after repeated delays and fierce wrangling over the airline's future.

Their plan envisages scaling back the airline's fleet and shedding jobs, but it needs at least R10-billion of new funds to work, and the government has not yet said where it will find the money.

"We are currently attending to and finalising the remaining outstanding administrative issues before filing a notice of substantial implementation," the administrators said in a statement.

Robert Nicholson, TMA-SA senior business rescue practitioner, said on Wednesday that it is still unclear where the funds would be obtained as the full details of the strategic partnership funding the plan have not been released.

Source
Reuters