South Africa: Creditors Approve SAA's Business Rescue Plan As the Airline Gets a New Interim Boss

A South African Airways Airbus landing at Munich Airport in 2015.
analysis

About 86% of creditors have voted in favour of the SAA business rescue plan, meaning that the airline will, for now, avoid liquidation. Meanwhile, Philip Saunders is the new SAA interim CEO. He becomes the fourth SAA CEO in five years.

A majority of SAA creditors have voted in favour of implementing a plan to restructure the troubled airline and momentarily saving it from the worst-case scenario of liquidation.

It emerged at a crucial meeting of SAA creditors on Tuesday, 14 July 2020 that 86% of the airline's creditors voted in favour of the business rescue plan - passing the 75% approval threshold that is required by the Companies Act. The Act provides for business rescue proceedings, which is an attempt to rehabilitate financially distressed businesses.

It is assumed that commercial banks, which are owed R16.4-billion by SAA and stand to be paid all amounts owed through the business rescue process, voted in favour of the rescue plan. In a coalition, commercial banks had a 65% voting power at the creditors' meeting.

At the same meeting, acting director-general for the Department of Public Enterprises, Kgathatso Tlhakudi, confirmed the appointment of Philip Saunders as the SAA interim CEO....

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 800 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.