South African Airways’ creditors have voted overwhelmingly in favour of a revised business rescue plan, paving the way for the restructuring and relaunch of the bankrupt state-owned airline.
During a vote held on July 14, 86% of creditors approved the plan which will require the carrier’s sole shareholder, the South African state, to provide funding to the tune of ZAR10.3 billion rand (USD597.8 million).
While the Treasury had previously cautioned it would not assist the airline owing to its insolvency, business rescue practitioner (BRP) Siviwe Dongwana told Moneyweb that the government has now informed them that it is in “full support of the plan and is committed to raising the requisite funding.”
“In this regard, a letter will be delivered to the BRPs tomorrow [July 15],” he added.
SAA’s current chief commercial officer, Philip Saunders, has been appointed acting chief executive of the new airline that is expected to emerge from restructuring. The details of SAA’s full board will be disclosed later in the week.
Kgathatso Tlhakudi, the acting director-general of SAA’s line ministry, the Department of Public Enterprises, told Moneyweb that the government would shortly appoint a transaction advisor tasked with tying up initial engagements with prospective strategic equity partners (SEPs) willing to invest in the airline and its various subsidiaries.
“The new SAA will be a worthy partner to those that choose to support the process represented by the business rescue plan that [was] put before the creditors' committee this afternoon,” he was quoted as saying by Moneyweb.
