Economy

SA agrees to fund SAA rescue: Draft Plan

Date: Jun 1, 2020

The South African government has agreed to fund a restructuring of South African Airways (SAA), if a business rescue plan for the struggling State-owned airline is adopted, a copy of the draft plan showed on Monday.

SAA entered business rescue, a local form of bankruptcy protection, in December, after which administrators took over the running of the airline and have been working on a plan to save the business.

The draft plan said the government had agreed to make a working capital injection, which the administrators estimated at not less than R2 billion ($114.86 million), fund employee layoffs, which could cost up to $114.86 million, and make an allocation of at least R600 million ($34.4 million) towards the repayment of general concurrent creditors.

A spokesperson for the administrators confirmed the draft plan was genuine.

($1 = R17.41)

--Reuters--

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