February 28, 2020 / 10:04 AM / a month ago

UPDATE 1-South African Airways rescue plan pushed back to end of March

(Adds quote, context, detail)

JOHANNESBURG, Feb 28 (Reuters) - Specialists appointed to try to save struggling South African Airways (SAA) have received a one-month extension until the end of March to publish a rescue plan, they said on Friday.

SAA entered a form of bankruptcy protection in December, with administrators Les Matuson and Siviwe Dongwana taking over the management of the state-owned airline, which hasn’t made a profit since 2011.

“We are still in the process of finalising the steps to implement the proposed restructuring option,” Matuson and Dongwana said in a statement, adding that a majority of creditors had approved the extension to March 31.

They added that an employees’ committee, creditors’ committee and the Department of Public Enterprises would be consulted on the draft rescue plan.

SAA is among several South African state entities including power company Eskom that are mired in financial crisis after nearly a decade of mismanagement.

It has received more than 20 billion rand ($1.3 billion) in bailouts over the last three years.

In the 2020 budget unveiled this week, the finance ministry set aside an additional 16.4 billion rand over the next three years to repay SAA’s guaranteed debt and cover debt-service costs.

SAA’s business rescue team said earlier this month that the airline would scale back some of its domestic and international routes from the end of February to conserve cash.

Reporting by Alexander Winning Editing by Joe Bavier

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below