in Business & Finance

Finalisation of SAA’s post commencement funding

Posted 29 January 2020 · Add Comment

The business rescue practitioners of South African Airways SOC (the Practitioners), supported by the Departments of Public Enterprises (DPE) and National Treasury (NT), have been successful in obtaining the balance of the post commencement funding (PCF) required to meet the short term liquidity requirements of the airline for the period until the business rescue plan (the Plan) is published and adopted.

 

This Plan is required in terms of Section 150 of the Companies Act and is the responsibility of the Practitioners. 

The advancement of the funds comes on the back of the business rescue process which began on 5 December 2019, with the local commercial banks providing the initial PCF of R2 billion in addition to the existing exposures to SAA. 

Discussions held with financial institutions have been fruitful with the Development Bank of Southern Africa offering to provide the next tranche of PCF, for a total amount of R3.5 billion, with an immediate draw-down of R2 billion. Furthermore, funding for the restructuring phase after the Plan is adopted is being considered by potential funders.  

The restructuring of SAA will provide an opportunity to develop a sustainable, competitive and efficient airline with a strategic equity partner remaining the objective of government through this exercise and will result in the preservation of jobs wherever possible. SAA is a key strategic asset which needs to be positioned to provide reliable connectivity to markets within South Africa, the African continent as well as servicing selected international routes.

Stakeholders of the airline should now have comfort that the rescue process is on a significantly sounder footing, and that passengers and travel agencies and airline partners may continue to book air travel on SAA with confidence.

* required field

Post a comment

Other Stories
Advertisement
Latest News

ICAO and CAAi launch lockdown recovery course for aviation professionals

In accordance with the recommendations of the ICAO Council Aviation Recovery Taskforce, together ICAO Global Aviation Training (GAT) and CAA International (CAAi), the aviation training arm of the UK Civil Aviation Authority, have

Ethiopia's Strong Roots selects Eutelsat satellite for DTH platform

Eutelsat Communications and Strong Roots Ethiopia Broadcasting Service plc have concluded a Master Service Agreement for a Ku capacity on a 36 MHz transponder on Eutelsat’s EUTELSAT 8 West B satellite.

Tons of problems for the SAAF

The South African Air Force has (quietly) celebrated its centenary against backdrop of worries that it is in “dire straits”.

IATA: Albakri in new leadership succession

The International Air Transport Association (IATA) announced that Muhammad Albakri, IATA’s regional vice president for Africa and the Middle East (AME), will be appointed senior vice president for customer, financial and digital

Air Mauritius doubles daily flights to Rodrigues

Air Mauritius, following their successful resumption of commercial flights on the Rodrigues route on the 1st of July, have from the beginning of this month, added a second daily flight to the Island.

Star Alliance enhances Travel Information Hub

Building upon the successful launch of its Travel Information Hub at the end of June, global airline network Star Alliance - which includes Ethiopan Airlines, South African Airways and EgyptAir - has unveiled a series of useful upgrades

AMAC SK2907290121
See us at