No further action in terms of bailing out SAA: Treasury

SABC News SAA R 4 - No further action in terms of bailing out SAA: Treasury

National Treasury says there has been no further action in terms of bailing out South African Airways (SAA), except to settle the guaranteed debt as attempts to revive the airline hangs on a knife-edge.

Government wants creditors to back a restructuring plan for SAA but no new bailouts have been allocated.

Leadership Consultative Forum collapsed

On Sunday last week, the Leadership Consultative Forum, which was meant to put together a new turnaround strategy for SAA, collapsed following the withdrawal of the Department of Public Enterprises.

The Department has accused unions of negotiating in bad faith and failing to put employee interests first.

However,  the SA Cabin Crew Association (SACCA)and the National Union of Metal Workers of South Africa (Numsa) accused the Department of being disingenuous and lying about the business rescue plan.

In the video below, Kgathatso Tlhakudi, Acting Director-General of the Department of Public Enterprises, speaks to SABC News:

Meanwhile, the Business Rescue Practitioners at SAA say the revised business rescue and restructuring plan should be published by this coming Tuesday, July 7.

The plan will incorporate ideas from committees representing the airline’s creditors and employees. A vote on the plan was delayed until July 14.

The BRPs have said government needs to provide at least R10 billion of new funds to pay some creditors, fund thousands of layoffs, and restart the airline. – Additional reporting SABC News

In the video below Independent Analyst Khaya Sithole discusses the Business Rescue Plan:

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