SAA business rescue finally gets all clear
The business rescue plan for SAA has finally been approved after all conditions on which it rested were met yesterday, according to Business Day.
Rescue practitioners Les Matuson and Siviwe Dongwana informed creditors of the development, saying another creditor meeting was no longer necessary.
Last Friday it emerged that SAA’s lenders, which include commercial banks and the Development Bank of Southern Africa (DBSA), were unhappy with technicalities of the repayment arrangement and had requested a commitment guarantee letter.
Before the start of the rescue, a consortium of domestic banks were owed about R9.2bn plus interest, which is long overdue for repayment.
When the business rescue process started, banks provided a further R2bn and the DBSA provided R3.5bn.
The Treasury undertook to repay the latter two amounts by 31 July.
The legacy debt has been penciled into the Medium-Term Budget Policy Statement for repayment by the Treasury over the next few years, beginning in 2020/2021.
But lenders want a guarantee confirmation letter of how the repayment will be made.
The practitioners said last week that all other conditions precedent had been met by Friday, including the furnishing of a letter from the Ministers of Public Enterprises and Finance that government would ‘mobilise funding’ for the plan, which is projected to be R10.1bn.
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