SAA looking for bridging finance
In their latest update to creditors, SAA’s business rescue practitioners (BRPs) say they are trying to raise bridging finance to cover the gap caused by the government’s R10,5bn in funding only being expected to be received by the airline in mid-January.
The BRPs say they are actively engaging with various lenders to determine whether bridging funding can be raised between now and January to allow for finalisation of the airline’s restructure and, potentially, for the resumption of operations.
In terms of section 132(3) of the Companies Act 71 of 2008, because the SAA business rescue proceedings have not ended within three months after they started, the BRPs are obliged to prepare a report on the progress of the proceedings and update it at the end of each subsequent month until the end of the proceedings.
The report notes that SAA’s operations remain suspended due to the lack of funding. However, early termination agreements have been signed in respect of all 40 leased aircraft, say the BRPs.
“Final consultations have continued between the Company and various labour bodies to finalise any remaining issues in respect of organisational structures, selection criteria and terms and conditions of employment. These discussions have been concluded with all parties other than the South African Airways Pilots Association (SAAPA) and close-out letters have been issued. Following numerous engagements and negotiations with SAAPA, a deadlock has resulted in the lodging of a dispute with the CCMA on October 31 in respect of the termination of the regulating agreement, new terms and conditions of employment for pilots and new salary structures for pilots,” added the BRPs’ report.
