SAA business rescue plan approved, ‘new’ flag carrier on the horizon
A majority of South African Airways (SAA) creditors
have voted to adopt the airline's proposed business rescue plan.
The vote in favour of the plan now gives the troubled airline a fighting chance.
On Tuesday, the SAA business rescue practitioners scheduled a creditors’ meeting to decide the fate of the troubled national carrier.
Rescue practitioner Siviwe Dongwana said 86% of the proxies voted in favour of the SAA business rescue plan.
“We have received proxies and 86% of the proxies are in favour of the business rescue plan of SAA.
“It is important at this stage to quote from the company’s act that in a vote called in terms of the act the proposed business rescue plan will be approved on a preliminary basis if it is supported by the holders of more than 75% of the creditor’s voting interest that voted and in this case, that is the case,” Dongwana explained.
In terms of legislation, this means the plan may be implemented, subject to funding obtained.
Dongwana said he’s pleased to have the backing of government.
“Government is in full support of the plan and is committed to raising the requisite funding,” he adds.
“A letter to this effect will be delivered to the BRPs tomorrow which is the 15th of July.”
The plan proposes that 1000 workers would be retained permanently and up to 1000 others to be placed on a temporary training and layoff scheme for 12 months.
SAA says it will contribute R4650 towards their pension fund, Unemployment Insurance Fund and medical aid. The balance of remuneration will only be paid when SAA can afford to absorb them or once they are laid off.
