- Title: South African Airways creditors approve rescue plan
- Date: 14th July 2020
- Summary: JOHANNESBURG, SOUTH AFRICA (FILE - NOVEMBER 15, 2019) (REUTERS) SCREENS WITH SAA LOGO (MUTE) VARIOUS OF EMPTY SAA CHECK-IN COUNTERS STRIKING SAA EMPLOYEES DANCING AND SINGING WHILE HOLDING BANNERS SAA EMPLOYEE HOLDING POSTER READING (English) "TALK TO US PRESIDENT" SAA EMPLOYEE HOLDING POSTER READING (English) "DOWN WITH RETRENCHMENTS" SAA EMPLOYEE HOLDING POSTER READING (English) "WE EATING DUST. THE GRASS IS NOT EVERGREEN ON OUR SIDE" VARIOUS OF STRIKING SAA EMPLOYEES GATHERED
- Embargoed: 28th July 2020 13:44
- Keywords: SAA South African Airways aviation analyst creditors rescue plan
- Location: CAPE TOWN, JOHANNESBURG AND HOEDSPRUIT, LIMPOPO, SOUTH AFRICA
- City: CAPE TOWN, JOHANNESBURG AND HOEDSPRUIT, LIMPOPO, SOUTH AFRICA
- Country: South Africa
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA003CMS5MDP
- Aspect Ratio: 16:9
- Story Text:EDITORS PLEASE NOTE: PART AUDIO QUALITY AS INCOMING
Creditors of loss-making South African Airways (SAA) approved a rescue plan on Tuesday (July 14) which requires at least 10 billion rand ($596 million) in new funding, throwing the ball into the government's court to come up with the cash to save the airline.
Administrator Siviwe Dongwana told a creditor meeting that the plan had been approved by 86% of voting interests.
"The creditors are accepting the business rescue plan, it's very good for SAA because it has been absolutely in suspended animation for the past nine months. And particularly obviously since the beginning of December when the business rescue plan was first started. But it needs to be recognised that the business rescue plan was written primarily for the creditors so they at least know where they stand," said aviation analyst Guy Leitch.
The rescue plan envisages scaling back the state-owned airline's fleet and shedding jobs but requires the government to find at least 10 billion rand of new funds for it to work. It is not yet clear where that money will come from.
Dongwana told the creditor meeting that the Department of Public Enterprises had told the administrators that the government would deliver a letter to them on Wednesday with a funding commitment.
(Production: Siyabonga Sishi)
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