South Africa’s flag carrier, South African Airways (SAA), has exited a local form of bankruptcy protection called business rescue after roughly 17 months.
The airline is now considered solvent, with administrators having discharged the business rescue and handed over its operations back to the board and executive team.
In a statement, its administrators said they had already filed a notice of “substantial implementation” of a business rescue plan with South Africa’s Companies and Intellectual Property Commission.
Furthermore, the Department of Public Enterprises (DPE), the ministry responsible for the airline, said the government was in the final stages of negotiations with the airline’s preferred equity partner.
Nevertheless, neither the administrators nor the DPE said when SAA might resume flights.
SAA was placed under business rescue in December 2019, and its long-standing financial woes worsened during the COVID-19 pandemic. This is essentially a form of bankruptcy protection. An administrator takes control of the company, intending to maximize the odds of survival for the airline or at least achieve as good of a return for creditors as possible.
See Also:
