CIPC receives SAA business rescue application
The Corporate and Intellectual Property Commission (CPIC) has confirmed the receival of South African Airways’ (SAA) application to be placed under voluntary business rescue.
Public Enterprises Minister Pravin Gordhan confirmed on Wednesday that SAA will be placed under business rescue with immediate effect.
This decision was taken by its board and is supported by the government.
The move comes a few days after the Department of Public Enterprises announced that the ailing airline will be going through a radical restructuring process which aims to ensure SAA's financial and operational sustainability.
The airline has five days to appoint a business rescue practitioner.
The department’s acting deputy director general Melanchton Makobe says the practitioner will decide how SAA will fly its aircraft.
"Although the board of directors will still be part of the company, whatever duties that they perform will be under the direction of the business rescue practitioner. Effectively the business rescue practitioner will take over the control and management of the company."
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