THERE is a reasonable
prospect of a
successful business
rescue for SAA, say business
rescue practitioners (BRPs),
following the first meeting of
creditors in December, which
representatives of the travel
trade attended.
Ceo of Asata, Otto de
Vries, and ceo of XL Travel
Group, Marco Ciocchetti,
attended the creditors
meeting. Marco told
TNW he expected that
a representative from
each of the South African
consortiums would act on
the Creditors Committee.
“The practitioners’
objective is to try and save
SAA and we urge the trade
to support them in achieving
this goal. The practitioners
specifically mentioned how
vitally important the travel
trade are to the continuity
of SAA and it is important
that we, as trade members,
remain positive about the
airline when engaging with
our customers and do not
place nails in its coffin,”
said Marco.
At the creditors meeting
it was announced that the
BRPs believed a business
rescue process would
achieve a better outcome for
all stakeholders rather than
an immediate liquidation.
Joint BRPs, Les Matuson
and Siviwe Dongwana,
said this was based on the
availability of further funding,
which National Treasury had
granted, and the ongoing
support from stakeholders.
“Our primary objective is
to either rescue SAA through
restructuring its affairs,
business, property, debt
and other liabilities, and
equity that maximises the
likelihood of the company
continuing on a solvent
basis, or to develop a plan
that results in a better
return for the company’s
creditors or shareholders
than would result from the
immediate liquidation of
SAA,” said Les.
As SAA leases most of
its aircraft there would be
limited assets that could
be realised for distribution
to creditors. PwC produced
a short-term cash flow
forecast ahead of the
meeting which indicated
that, should a liquidation
take place, preferent
creditors would receive
realised funds first and it
would be unlikely that there
would be any funds left over
for distribution to concurrent
creditors, such as travel
agents.
The BRPs requested an
extension for the publication
of the Business Rescue
Plan, which was initially due
on January 13. Creditors
voted to extend the deadline
to February 28. Creditors
were also asked to submit
claim forms for outstanding
amounts owed by SAA for
services rendered prior to
December 5.
In order to help the
BRPs reach their goals
and to provide a forum for
creditors to raise issues
constructively, a creditors’
committee was set up with
an independent chairperson.
Marco added that Asata
had arranged a meeting
with SAA coo, Philip
Saunders, and consortium
representatives on January
15 for further updates.
‘The aim is to save SAA’
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