Featured

Cabinet supports SAA restructuring plan, okays equity sale

Last updated on September 11th, 2021 at 02:41 pm

South African government supports restructuring proposals for SAA that include job cuts as well as the introduction of equity partners in the long troubled airline.

In a statement released on Friday, Cabinet said it was in support of “… the concerted effort to mobilise funding from various sources”, including the introduction of potential equity partners.

On Thursday 69% of the state-owned airline’s creditors voted to have a meeting to vote on a proposed rescue plan adjourned until 14 July. In terms of the plan, government must come up with the necessary funding in terms of the proposed plan – about R10.3 billion – by 15 July.

In mid-April the Department of Public Enterprises, representing government as shareholder in the airline, informed the rescue practitioners that there will be no more government funding available. This was indeed reflected in no money allocated to SAA in Finance Minister Tito Mboweni’s supplementary budget announced on Wednesday.

Government is now pinning its hopes on finding a strategic equity partner and, according to the acting director general of the DPE Kgathatso Tlhakudi, there are “some serious players” interested in the value SAA offers. Tlhakudi even indicated that government might consider only taking a minority stake in the airline alongside such a private investor.

“Cabinet maintains that a positive vote from creditors to finalise the business rescue process is still the most viable and expeditious option, for the national carrier to restructure its affairs which include its business, its debt and other liabilities,” it said in a statement on Friday.

(News24)

Albert Echetah

Recent Posts

Kenya Launches Official Probe intoUgandan Leader’s Alleged Kidnapping

The government of Kenya announced that it is looking into the suspected kidnapping ofKizza Besigye, a well-known opposition politician from…

November 22, 2024

At least 7 members of the Nigerian security forces are missing after insurgentsambushed their convoy

A team of 80 security agents tasked with protecting the electricity grid was ambushed onMonday in Shiroro, Niger State, by…

November 21, 2024

Cryptocurrency Gains Momentum inAfrica Amid Global Shifts in Trump’sElection

Cryptocurrency becomes the new thing in Africa. People shift for stable alternatives aftertheir unstable local currencies. Many people believe Donald…

November 21, 2024

UAE Delivers Lifeline: 30,000 Food BasketsBring Hope to Sudanese Refugees in Uganda

UAE has also distributed 30,000 food baskets to Sudanese refugees in Kiryandongo refugeecamp Uganda to benefit nearly 100,000 affected people.Aid…

November 21, 2024

Turkey wants to increase its trade with Africa to 50 billion dollars

The trade volume between Türkiye and 54 African countries has grown sevenfold, reaching $37 billion from 2003 to 2023, Yılmaz…

November 20, 2024

Tanzania, Botswana, and Mozambique Secure Spots in 2025 Africa Cup of Nations

The final round of the 2025 Africa Cup of Nations qualifying matches was held this week with Tanzania, Botswana and…

November 20, 2024

This website uses cookies.