SAA gets R3.5bn lifeline from Development Bank
Embattled national carrier SA Airways (SAA) has secured R3.5bn in funding from the Development Bank of Southern Africa.
“Discussions held with financial institutions have been fruitful,” joint SAA business rescue practitioners Les Matuson and Siviwe Dongwana said in a statement on Tuesday.
The business rescue practitioners, supported by the departments of public enterprises and National Treasury, obtained the funding needed to meet the short term liquidity requirements of the airline.
“Discussions held with financial institutions have been fruitful, with the DBSA offering to provide the next tranche of funding, for a total amount of R3.5bn, with an immediate drawdown of R2bn.
"Furthermore, funding for the restructuring phase after the [business rescue] plan is adopted is being considered by potential funders,” read the statement.
“The advancement of the funds comes on the back of the business rescue process which began on 5 December 2019, with the local commercial banks providing the initial post commencement funding of R2bn in addition to the existing exposures to SAA.”
The business rescue practitioners said last Friday they had saved enough cash to ensure January salaries were paid to airline staff.
The DBSA is wholly owned by the South African government.