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'Court will have to rule if SAA is financially distressed'

22 November 2019 8:20 AM
Tags:
SAA
Solidarity trade union
Business rescue
Companies Act
Government
SAA strike
Solidarity union
SAA strike action
Business rescue practitioner Louis Klopper explains what the Companies Act says about placing a company under business rescue.

Trade Union Solidarity is asking the Johannesburg High Court to place the South Africa Airways (SAA) under business rescue.

The union has served the ailing airline and Miniter of Public Enterprises Pravin Gordhan with court papers.

This comes in the midst of a week-long strike by unions who are demanding a salary increase.

It is estimated that SAA has been losing R50 million a day during the strike, which began last Friday.

Refilwe Moloto speaks to business rescue practitioner Louis Klopper about the possibility of placing SAA on business rescue.

RELATED: Is being placed into business rescue the way forward for SAA?

The act is very clear on this matter whether you are a Pty Limited, Close Corporation or an SOE Limited like in this particular case, SAA is subject to the prescripts of the act.

Louis Klopper, Business rescue practitioner

The companies act clearly defines the situation in which a company should go under business rescue and it does live any room to debate.

Louis Klopper, Business rescue practitioner

RELATED: 'We want court to intervene and place SAA in business rescue,' says Solidarity

He adds that the court will base its ruling on the Companies Act.

The court will have to decide whether, in fact, the company which is the subject of debate is financially distressed.

Louis Klopper, Business rescue practitioner

It can be logically concluded that SAA at this particular point in time is financially distressed.

Louis Klopper, Business rescue practitioner

The announcement by the minister that they may not be able to pay salaries on time suggests that SAA is financially distressed, Klopper adds.

The moment you are unable to pay your obligations whether it is salaries or loans you are then deemed to be financially distressed.

Louis Klopper, Business rescue practitioner

Listen to the full interview below...

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22 November 2019 8:20 AM
Tags:
SAA
Solidarity trade union
Business rescue
Companies Act
Government
SAA strike
Solidarity union
SAA strike action

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