SAA creditor meeting called after govt misses funding deadline

Says it’s still trying to source the R10bn.
Image: Shutterstock

Administrators at struggling South African Airways (SAA) have called creditors to a meeting on Friday after the government missed a deadline to make funding available for a restructuring plan.

The administrators took control of state-owned SAA in December after almost a decade of financial losses and published a rescue plan in June following repeated delays and wrangling over its future.

But the plan, which envisages scaling back SAA’s fleet and cutting jobs, needs at least R10 billion in new funds to work, and the cash has not materialised despite assurances from the government.

Of the more than R10 billion needed, around R2.8 billion is required for initial working capital including restart costs.

Friday’s creditor meeting will be convened at 11:00 local time (0900 GMT) to discuss the funding issue and the proposed future of the company, the administrators said.

The Department of Public Enterprises, the ministry responsible for SAA, said on Thursday that it was still trying to source the necessary funding and that it was assessing proposals from several potential strategic equity partners.

SAA has not flown commercial passenger flights since March, when South Africa entered one of the strictest lockdowns in the world to contain the spread of the coronavirus.

Separately, two of SAA’s largest unions, Numsa and Sacca, said they would picket outside SAA offices on Friday to demand that the government makes funding available.

“Government is the shareholder of this airline and as such it has a duty to ensure that the airline is viable and to protect jobs, as promised,” the unions said in a statement.

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Oh please, time for a fire sale – just wasting time and money procrastinating and delaying the inevitable.

This nonsense could have been put to bed had Pravin Gupta not interfered.

He and his boss has cost this country billions.

#VoetsekANC.

Government was quick to spin to us that they won’t be using taxpayers monies for this, when we all know that it was their plan all along, but then they got some pushback and pretended it was not the case. This is clear, because they were quite adamant at the outset that there were funding, so if there is none now, it proves the point I’m making.

Certainly looks like it was another Pravin – lie! He said on Friday (17 Sept) he will ask the financiers (banks/ futuregrowth probably to come up with the elusive R10,3 bn. Watch local banks fall for this tripe- their shareholders should kick them in the b”* if they agree to such a bad loan
But worse; if the banks fail to come up with the money as they should, the only other possible sourse of funding would be Mboweni’s mini-budget in Oct! This would mean tax payers AND a further credibility crash for Ramaphosa AND this time, Mboweni too!
Watch riots out much bigger than SAA union staff are threatening currently

Why wouldn’t anyone invest in an insolvent African airline during COVID, run by incompetent kleptomaniacs? Didn’t see this coming

Just bury the SAA corps and do not try a ” Frankenstein ” number on it. It is getting just too embarrassing.

DPE and goverment are immune to being embarrassed; they have no shame!
It’s the tax payer Gordhan is again going to milk – this time in Oct via Mboweni’s mini-budget; Gordhan says in the Sunday Press – fin24.com – Gordhan is on record saying there will be money to get SAA going by way of shuffling items in spending in the mini-budget – through Mboweni’s appropriation budget at parliament.
That means less service delivery.

Big 4 local banks have said no more money from us. Now go flight it yourselves Gov…

They must stick to it. Refuse more money!
Weren’t they supposed to get part of the guarantees paid end of August?
Were these paid by government?

Why do we need SAA anymore? Foreign airlines now offering flights at competitive rates. What’s the point of SAA apart from the free jaunts for cadres? On second thought that’s maybe why we need it!

“Says it’s still trying to source the R10bn.”

Please send me a teaser. Cause I just wanna tease you back.

No news here. Let’s talk about the weather.

It doesn’t make sense to restart the airline during COVID-19 lockdown, e.g. flying operations. Wouldn’t it be wiser to start selling tickets for H1 & H2 2021 and then use coach sharing agreements to fly the passengers until own aircraft are phased in? At least to get the airline back on its feet.

Doesn’t make sense to restart the airline – period!

You all forget that the cronies are the creditors so the money was always going to come…. it’s just unbelievable how this carries on!

I note that the government is trying to persuade the banks to lend the money. No doubt the banks will be offered government guarantees similar to those that previously backed bank loans of R16.5bn from the banks. This is obviously an ANC trick. The government can then say that the money came from third parties!!

watch the space…. the printing of the monies for payments & EFTs… to make a LIFT-OFF AirLine .. will SOON soon be ready… the money machine was completely Out OF Order … due to the “hockIN”!!

Deadlines and Africa – matches like oil and water.

End of comments.

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