Court application to have SAA under business rescue delayed

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BNP Capital was appointed by SAA to act as a financial advisor. The Organisation Undoing Tax Abuse says BNP had its Financial Services Board licence suspended.

JOHANNESBURG - A high court application to have SAA placed under business rescue was expected to proceed on Tuesday, despite reports that the airline will receive a further R5-billion in government-sourced funding.

However, the case will not be heard on Tuesday as trade union Solidarity is busy finalising its papers. 

The union wants the North Gauteng High Court to order the government to place SAA under business rescue.

READ: Turbulence ahead as SAA records massive loss

It argues that another government-sourced bailout would simply perpetuate  mismanagement at SAA, without providing any lasting solutions.

Last October, Africa Check estimated that SAA has received R29-billion in government bailouts since 1999.