Conditions for SAA rescue plan extended to Monday
Creditors of SAA have voted to set a new deadline for the finalisation of the state-owned airline’s business rescue plan, BusinessLIVE reported.
The extension became necessary after one of the condition's precedent for the rescue to be successful was not met by the deadline of July 22. The outstanding condition relates to a guarantee confirmation letter from the government to lenders setting out the repayment of debt. Banks are owed R9.2bn plus interest in legacy debt and R5.5bn for the post commencement financing of the rescue.
At a meeting on Friday, the business rescue team told creditors the finalisation of the letter was imminent as there was only one issue still to be ironed out. Lawyers for the department of public enterprises, treasury and the business rescue practitioners were working on the form of the letter. This would be done in the next few hours on Friday in time to meet the new deadline of Monday.
All other conditions had been met within the time period, they said. This includes the condition that government “provide the requisite funding” for the new SAA. The ministers of public enterprises and treasury have said they “will mobilise funding”, but there is no indication yet of the source for the money.
Should the final condition be met by the end of Monday, business rescue practitioners Les Matuson and Siviwe Dongwana will hand the company back to the board and management of the national carrier.