Business

Future of SAA unclear as rescue funding does not materialise

Future of SAA unclear as rescue funding does not materialise

The anticipated funding from the government to rescue SAA did not materialise as had been hoped on Thursday.

The joint business rescue practitioners for SAA were awaiting the funding for the restructuring of the airline and implementation of its business rescue plan. Thursday was the D-Day for the expected funding.

The business rescue plan, approved by the airline’s creditors in July, projected that at least R10.1bn was required.

“The [practitioners] hereby advise affected people that the anticipated funding has not been received by the company, in accordance with the commitment from government to provide the funding for the restructuring of the company and the implementation of its business rescue plan,” they said in a statement.

They said a meeting of creditors would be convened on Friday at 11am to engage those affected and the proposed future of the company.

The practitioners said at the meeting, they will provide an update on the status of the financial position of the airline and the prevailing circumstances.

In July, there was uncertainty about where the funding would come from.

Public enterprises minister Pravin Gordhan said at the time that the funding government had committed for the business rescue plan was still being worked on.

“This is money which is required over a period. What government has committed to is to mobilise funding,” Gordhan said at the time.

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