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Government Has Until End Of Business Day To Provide Guarantee Letter To SAA

Government has until the end of business on Monday to provide the confirmation guarantee letter to the South African Airways (SAA) Business Rescue Practitioners (BRPs).

The BRPs will be forced to convene another meeting with creditors this week should the letter not be provided.

Finance Minister Tito Mboweni is yet to confirm where it will get more than R10 billion to fund the restructuring of SAA.

The BRPs said they would convene a meeting with creditors last Friday to discuss the guarantee confirmation letter that is yet to be provided to the airline.

In January, the Development Bank of Southern Africa (DBSA) approved an equity bridge loan facility of R3.5 billion to SAA to keep it flying.

In 2019, commercial banks provided R2 billion of post commencement funding in support of the Business Rescue Plan.

According to the revised Business Rescue Plan, money owed to these entities are expected to be paid into a legal entity called receivership which will in turn pay the funders.

One of the joint BRPs, Siviwe Dongwana, last week said the Public Enterprises Department will appoint a new interim board in the coming weeks.

The airline’s acting Chief Operations Officer, Philip Saunders, has been appointed the acting interim Chief Executive Officer.

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