SAA terminates deal with financier BnP Capital

22 July 2016 - 09:42 By BDlive

South African Airways has terminated its deal with BnP Capital, a "boutique" financier appointed to help the airline restructure its R15-billion debt and to raise funds in return for a R256-million success fee.

The airline said yesterday it had appointed Michael Kleyn as acting group treasurer. Cynthia Stimpel has been suspended as treasurer.SAA said last week it had placed the deal with BnP on hold following legal threats by lobby group Organisation Undoing Tax Abuse, which also said the Financial Services Board had revoked BnP Capital's operating licence shortly before the deal.SAA said BnP Capital had been appointed after a potential lender withdrew from the deal before an agreement had been signed following a "procurement process"."SAA was faced with a predicament and had to consider on an urgent basis other alternatives to mitigate its risks associated with loans that were maturing within a month," the airline said.It followed a process allowed for in the supply chain management policy and recognised by the Treasury, which allowed for a deviation from a tender process "and go on a confinement process", it said.It took the decision to terminate the deal on Wednesday following submissions from BnP Capital. It had received correspondence from law firm Webber Wentzel, representing Outa, stating concern about a "range of issues"."The concerns were individually considered fully, including whether or not BnP Capital was in possession of a valid FSB licence as a financial services provider," SAA said...

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