SAA business rescue practitioners need more time
SAA business rescue practitioners have asked for another extension to provide a plan on how they expect to save the ailing state-owned airline. The BRPs were supposed to present new turnaround plan for SAA to the department of enterprises on Friday, 29 May. SAA went into business rescue in December 2019 and the airline narrowly avoided liquidation last month when the DPE came to its rescue after the BRPs warned that there was not be enough money to continue paying salaries and other costs beyond April.
Although they say SAA can be saved, the practitioners told DPE that their draft restructuring plan could not be finalised in time because of the coronavirus (Covid-19) which has "nullified" all of its assumptions. SAA, like other airlines, has been unable fly its aircrafts since the lockdown began, save for rescue mission planes.
The BRPs said with their initial plan no longer viable, they have developed a new "post-Covid-19 plan" but after engagements with DPE which is SAA's sole shareholder, they decided to prepare a revised plan. They said the revised draft plan would still be circulated today but they still need to consult with the affected parties which include employees, creditors and the shareholder.
"As a result of these consultations and to give the respective stakeholders reasonable time period to consult on the revised plan, the practitioners request a further extension to 8 June 2020," read the letter addressed to stakeholders.
The BRPs have asked for three other extensions in the past.
