Department of Public Enterprises
The public enterprises department has welcomed the commitment by national treasury that government will support and source funding for a business rescue plan for South African Airways (SAA).
In a statement, the department indicated that a letter of support that commits government “to mobilise funding for the short, medium and long term requirements to create a viable and sustainable national airline” was signed by the finance and public enterprises ministers on 15 July 2020 and provided to the Business Rescue Practitioners (BRP).
In terms of the business rescue plan that was published by the BRPs for SAA, government, as the sole shareholder of SAA, is required to provide a letter of support for funding the plan “where it results in a viable and sustainable national flag carrier that provides international, regional and domestic services”.
The business rescue plan projects that R10.1 billion will be required to “fund the rescue plan, clean up and stabilise the balance sheet of SAA, restructure the rest of the Group entities that are not in business rescue, provide working capital for the rest of the group’s entities, and to create a stable and viable platform for a new restructured national airline”.