Today's Labour News

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saa thumb medium95 76BL Premium reports that the business rescue practitioners (BRPs) for South African Airways (SAA) have called time in the ongoing rescue saga, warning that if government funding to restart the state-owned airline is not in hand by next week, they will be forced to go back to the drawing board.  

This would again place SAA in danger of liquidation, a fate the government has tried hard to avoid.  Liquidation would also not be to the advantage of employees whose retrenchment pay would be capped.  The government has promised “to mobilise funding” for the airline, which requires R10.1bn to settle outstanding obligations, pay retrenchment packages and restart operations.  But, the Treasury has advised that no resources for SAA were available from the fiscus.  Instead, the Department of Public Enterprises has been trying to attract an equity partner and arrange finance from other quarters.  In a notice to creditors and affected people posted on their website, the BRPs wrote:  “Should the practitioners not be satisfied that sufficient progress has been made for the timeous advancing of the funding, a meeting of creditors will be convened on September 18 to engage with affected persons on the issue and the proposed way forward, taking into account all the relevant factors.”

  • Read the full original of the informative report in the above regard by Carol Paton at BusinessLive (paywall access only)

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