South African Airways creditors approve rescue plan

PUBLISHED: Tue, 14 Jul 2020 17:16:26 GMT
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JOHANNESBURG (Reuters) – Creditors of loss-making South African Airways (SAA) approved a rescue plan on Tuesday 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 practitioners welcome the approval of the business rescue plan with an overwhelming majority of those who voted. It is an important step forward for the airline and provides much-needed certainty towards a restructured SAA,” Dongwana added in a statement.

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.

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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.