FOLLOWING SAA’s
entrance into business
rescue in December, Iata
has confirmed that it is
working with SAA’s current
management team and the
business rescue practitioner
to ensure that the airline
continues to meet all the
requirements to remain
in Iata’s BSP, CASS (Cargo
Account Settlement System)
and ICH (Iata Clearing
House) settlement services.
“In this regard, SAA has
placed certain security
and guarantees to remain
an active participant in all
of Iata’s settlement
systems. SAA has also
reassured Iata that the
intention of the business
rescue process is to ensure
that SAA will continue
to operate,” said the
association in a statement.
The business rescue process
of SAA is on a significantly
sounder footing following
news earlier this week that
the airline’s joint business
rescue practitioners have
been successful in obtaining
the balance of the post
commencement funding (PCF).
This funding of R2bn is
required to meet the shortterm liquidity requirements
of the national carrier until
the business rescue plan is
published and adopted.
“Passengers, travel
agencies and airline
partners may continue to
book air travel on SAA with
confidence,” said Louise
Brugman, spokesperson
for the two practitioners,
Les Matuson and Siviwe
Dongwana.
This ends weeks of
uncertainty about the future
of the national carrier
following reports that the
R2bn earmarked for the
airline had still not been
received from government.
Louise highlighted that
discussions held with financial
institutions had been fruitful,
with the Development Bank
of Southern Africa offering to
provide the next tranche of
PCF, a total amount of R3,5bn
– with an immediate drawdown of R2bn.
Furthermore, funding for
the restructuring phase after
the business rescue plan is
adopted is being considered
by potential funders. “The
restructuring of SAA will
provide an opportunity to
develop a sustainable,
competitive and efficient
airline with a strategic
equity partner remaining
the objective of government
through this exercise, and
will result in the preservation
of jobs wherever possible,”
said Louise.
