SAA activities suspended while airline awaits funding

The South African Airways’ (SAA) business rescue practitioners (BRPs) have confirmed that all activities will be suspended with immediate effect.

In a statement released on Tuesday, 29 September, the BRPs explained that the decision of the suspension was to place SAA under care and maintenance until funding discussions were completed.

This comes after government had announced that it was committed to SAA’s restructuring process with the struggling airline set on to receive R10.5 billion in funding.

The BRPs noted that there has been certain progress in the past few days in terms of securing of funding for SAA’s business rescue plan to be implemented following a meeting with creditors which was convened on 18 September 2020.

This is only subjected to certain terms and conditions, the BRPs said.

“The BRPs and government have engaged with certain funders that have indicated a willingness to provide a portion of the funding required for the implementation of the business rescue plan.

“The BRPs are engaging with government in relation to the securing of the remaining funding that is required to fully implement the business rescue plan and what the implications would be for the company if it receives a portion of the required funding.”

The airline’s BRPs also indicated that they needed time to “assess and determine the appropriate way to proceed in the absence of funding, between the sale of the business or assets of the company and its liquidation…

“The BRPs will be able to make that determination and conclude those details in the following week.”

The BRPs further said that they would continue to update the affected people on the progress of the matters and how “this will impact on the business rescue proceedings”.

Meanwhile, from 1 October, international travel will be allowed, while only three airports will be operational: OR Tambo International, King Shaka Airport, and Cape Town International airport, as announced by President Cyril Ramaphosa.

Travellers will be required to present a negative test result not done more than 72 hours prior to travelling or be subjected to mandatory quarantine.

Travel may be restricted to and from certain countries that have high infection rates, said Ramaphosa, adding a list of countries would be published based on the latest scientific data.

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