Public Enterprises calls on creditors, unions and other stakeholders to vote in favour of a business rescue plan for SAA
The Department of Public Enterprises (DPE) calls on creditors, unions and other stakeholders to vote in favour of a business rescue plan for SAA tomorrow as this is the only realistic pathway to the restructure the airline and for a new national carrier to emerge from the business rescue process.
The vote is an important landmark in the rescue, after labour unions and staff representatives have accepted voluntary severance packages (VSPs) for SAA employees.
Following the adjournment of the creditors meeting two weeks ago, the Business Rescue Practitioners (BRPs) have revised the business rescue plan. By approving the business rescue plan, creditors and employees will become the co-creators of a new national airline at a time when the devastating consequences of the COVID-19 are causing thousands of job losses in the global aviation industry.
This is the only realistic path through which creditors and employees will derive optimum benefit, either for outstanding debts due, or for severance packages that will become available to retrenched employees. It is also the preferred path from which a new viable, sustainable, competitive airline that provides integrated domestic, regional and international flight services, can emerge.
Cabinet has expressed its support for the concerted effort to mobilise funding from various sources to finance the business rescue plan, including from potential equity partners for the uptake of the new airline.