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....