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South African Airways asks lenders for R16bn

Days after saying it could pay its debts.

JOHANNESBURG – South Africa’s cash-strapped national carrier plans to raise R16 billion ($1 billion) from banks and other financial institutions, a newspaper notice showed, days after saying it could pay its debts.

State-owned South African Airways is seeking secured and unsecured funding with a three- to 15-year duration and wants to start drawing down the amount within two weeks of signing the loan agreement, it said in the notice published in the Sunday Times newspaper.

“Three drawdowns are envisaged starting end October,” the firm said, adding that bidders could submit proposals for part or all of the required funding from Monday until September 16.

“South African Airways requires funding to meet its working and capital requirements as well as to consolidate its current debt portfolio,” the airline said.


SAA funding request


The airline’s spokesman Tlali Tlali could not immediately comment when reached by Reuters.

Hong Kong’s tax authorities last week threatened to ground SAA planes if the airline did not provide financial statements by September 6.

The airline has failed to submit financial statements for the past two years, with results for 2015/16 held back by Treasury’s refusal to grant the loss-making carrier R5 billion in additional guarantees.

The opposition Democratic Alliance on Friday called for a parliamentary meeting to work out how to prevent the airline from missing payments to creditors, but SAA has said it was able to pay its debts.

($1 = R14.3118) 

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Bulldust. Gordhan will not let it happen and Dudu is nearly a goner.

Every bank I have ever approached for business funding have all asked for audited financial statements. I believe banks may be engaging in reckless lending by lending to an entity that has not published audited financial statements.

FULLY agree. Unless it’s the Gupta bank…

No they CANNOT pay their debts. They don’t have any money. When you don’t have money, you can’t pay bills. Accounting 101. To get money you must tell the taxpayers to pay. But the taxpayers are gatvol and will NOT pay any more.

Can it borrow this money without additional state guarantees? It’s time directors of the board get criminally charged with reckless trading like the ones of African Bank and its furniture subsidiary!

The closing date of this request is long after Hong Kong will have taken away SAA’s landing rights in their territory.

Sorry Dudu, but you are in the dudu now 🙂

Call for an urgent parliamentary enquiry and immediate dismissal of the executive.

The Association of Notorious Criminals need to be congratulated, once again, for running another SA entity comprehensively into the ground!

Their determination to reward incompetence is unprecedented even for Africa.

We the tax payer must stop funding this madness now.

End of comments.





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