South Africa: Another Delay in Release of SAA Rescue Plan

analysis

Rescue practitioners Siviwe Dongwana and Les Matuson have asked creditors for another extension -- the fourth thus far -- to the deadline to publish SAA's business rescue plan.

The SAA business rescue practitioners were expected to table a rescue plan on Friday 29 May, but instead asked creditors of the troubled airline for another extension.

Siviwe Dongwana and Les Matuson set themselves a new deadline of 8 June 2020 for the unveiling of the restructuring plan, which has been worked on for five months since SAA was placed in business rescue on 5 December 2019.

The latest delay has yet to be approved by creditors - including commercial banks, aircraft lessors and others, who are owed more than R6-billion by SAA. A meeting with creditors on the request is yet to be scheduled.

If the latest extension is approved, it will be the fourth to be granted. The plan was supposed to be published on 28 February 2020 after an initial extension. Subsequent deadlines were 31 March and 29 May.

Dongwana and Matuson said they needed more time to consult with SAA's affected parties, including the government (the sole shareholder of the airline), more than 5,000 workers...

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