SAA’s business rescue practitioners (BRPs) say they are assessing the national carrier’s situation following feedback from government that it would no longer offer the airline any funding.
The BRPs wrote to government on April 2, presenting a care and maintenance plan for the restart of operations and requesting a commitment on funding, they said in a statement.
On April 14, they received a response through the Department of Public Enterprises, saying government would not provide funding for the care and maintenance budget, nor additional funding to sustain the business rescue process. Neither would lending guarantees be provided. The practitioners must consider their options within their available resources.
Meanwhile, the BRPs have reaffirmed their commitment to the process.
“As a reminder, this is what Les Matuson said on December 20:
‘Our primary objective of the business rescue process is to either rescue SAA through restructuring its affairs, business, property, debt and other liabilities and equity that maximizes the likelihood of the company continuing on a solvent basis or develop a plan that results in a better return for the company’s creditors or shareholders than would result from the immediate liquidation of SAA’,” Louise Brugman, spokesperson for SAA's business rescue practitioners told Tourism Update.