South Africa’s ailing national carrier, South African Airways (SAA), will need a cash injection by the end of the week if it is to keep going, according to its business rescue practitioners (BRPs).
“In the ongoing engagements on this issue, the government has continued to express its commitment to making this funding available and has undertaken to do so during the course of next week,” the BRPs said.
They said the government had advanced about R9.3 billion to enable SAA to repay various lenders, but that the remaining portion of short-term funding had not yet been made available.
The BRPs were ‘engaging tirelessly’ with the government on this. Whether or not business rescue proceedings could continue would hinge on funding being given this week.
‘Should the BRPs not be satisfied that sufficient progress has been made for the timeous advancing of the funding, a meeting of creditors will be convened on 18 September 2020 at 11h00 to engage with affected persons on this issue and the proposed way forward taking into account all relevant factors,’ the BRPs said.
Meanwhile, it has been reported that Ethiopian Airlines Group, the continent’s biggest airline, is among companies in talks with the government on potentially offering support to SAA. Unnamed sources indicated that taking a stake in SAA was among options under discussion.