SAA rescue plan faces pushback from competitor and labour
A vote to accept or reject South African Airways’s (SAA) rescue plan is due to take place on Thursday, but not without hurdles.
Competitor SA Airlink has approached the court for an urgent interdict of the creditors meeting pending the completion of a separate application to place SAA under provisional liquidation saying the airline’s rescue has no reasonable prospects of success.
This was revealed by the Department of Public Enterprises (DPE) on Monday which said while it was not cited as a respondent in SA Airlink’s papers it would oppose the application as the shareholder representative.
Business rescue practitioners Les Matuson and Siviwe Dongwana said they would oppose the application as well.
SA Airlink is a creditor of SAA whose payments could be compromised by the business rescue process. When the airline was placed under business rescue SAA owed SA Airlink hundreds of millions which it says should have been paid to the airline by December 2019.
The money comes from ticket sales that were conducted on behalf of SA Airlink by SAA, now the R500 million debt has been treated as pre-commencement debt in the final rescue plan.
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