‘Out with the old, in with the new’: Govt welcomes vote in favour of SAA business rescue
The Department of Public Enterprises has welcomed the vote in favour of a business rescue plan for South African Airways (SAA).
A majority of the airline’s creditors voted to adopt the airline's proposed business rescue plan on Tuesday.
SAA business rescue practitioners scheduled a creditors’ meeting on Tuesday to decide the fate of the troubled national carrier.
The department’s acting director-general Kgathatso Tlhakudi was also in attendance and vowed government’s full support for a new, restructured airline.
“Government appreciates the level of commitment that has been shown by the various stakeholders towards the achievement of a sustainable SAA.
“The restructuring that is being proposed for SAA is fundamental and will create a solid base for the emergence of a competitive, viable and sustainable national airline.”
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SAA business rescue plan approved, 'new' flag carrier on the horizon
The vote in favour of the plan now gives the troubled airline a fighting chance. On Tuesday, the SAA business rescue practitioners scheduled a creditors' meeting to decide the fate of the troubled national carrier. Rescue practitioner Siviwe Dongwana said 86% of the proxies voted in favour of the SAA business rescue plan.
Tlhakudi said the favourable vote was a much better outcome for creditors and SAA employees than liquidation.
“The new SAA will be a worthy partner for those who choose to support the process. Government, in the coming days, will announce an interim board for the new SAA.”
Meanwhile, Philip Saunders was appointed the new interim CEO.