Streaming issues? Report here
Africa Melane 2019 1500 BW Africa Melane 2019 1500 BW
Early Breakfast with Africa Melane
04:00 - 06:00
volume_up
volume_mute

Up Next: Breakfast with Refilwe Moloto
See full line-up
Early Breakfast with Africa Melane
04:00 - 06:00
Home
arrow_forward
Business

It was either business rescue or liquidation, explains SAA board member

5 December 2019 1:29 PM
Tags:
SAA
Solidarity
Jobs
Business rescue
SAA Board
SAA strike
Mark Kingston

A business rescue practitioner will be appointed in the next 24 hours to find out if there is a reasonable prospect of saving SAA.

Cash-strapped South African Airways (SAA) has been placed under businness rescue.

The government says this is the only viable option to save the ailing airline.

SAA board member Martin Kingston says the decision was taken after extensive discussions with government and the airline's lenders.

According to Kingston, it was either liquidation or business rescue.

It became apparent that the only choices that were available to the board were to either place the company into liquidation or business rescue.

Martin Kingston, SAA Board member

He argues that last month's week-long strike, which cost SAA around R50 million per day, was a major contributing factor to its dire financial situation.

RELATED: SAA knew it was broke before employees went on strike, says Numsa

SAA will also get a R2 billion lifeline from National Treasury in post business rescue commencement funds.

How will business rescue work?

A business rescue practitioner will be appointed in the next 24 hours to investigate whether there is a reasonable prospect of salvaging the airline.

If there is, and the process goes ahead, the government and the board will no longer have any control over SAA.

The business rescue practitioner will have the power to make autonomous decisions, explains Business Day deputy editor Carol Paton.

Kingston explains that the business rescue practitioner may decide to accelerate the proposed restructuring at SAA, which may lead to some job losses.

Paton says that government missed the opportunity to bring a strategic equity partner of on board to help get SAA to back on track.

RELATED: A joint venture with the right airline could save SAA, says aviation expert

Business rescue is an attempt to avoid the finality of liquidation.

Carol Paton, Deputy editor - Business Day

Trade union Solidarity had last month filed a court application for SAA to undergo business rescue, but the airline had opposed the idea at the time.

Solidarity's Dirk Hermann has raised some concern over the airline's sudden about-turn, saying that business rescue will not work if management meddles in the process.

The worrying thing is that the motivation can be that they want to have more control over the process. If they want to control the process, it's going to fail.

Dirk Hermann, Deputy general secretary - Solidarity

Listen to SAA board member Martin Kingston explain:

Listen to Business Day's Carol Paton:

Listen to Solidarity's Dirk Hermann:


5 December 2019 1:29 PM
Tags:
SAA
Solidarity
Jobs
Business rescue
SAA Board
SAA strike
Mark Kingston

More from Business

Ecstasy mandy mdma 123rf 123rflifestyle

Decriminalise the use of recreational drugs – Department of Social Development

25 September 2020 3:37 PM

"It’s time to stop arresting drug users," Deputy Minister of Social Development Hendrietta Bogopane-Zulu told the UN this week.

Share this:
Read More arrow_forward

Elon Musk on the cover of Newsweek 123rfbusiness 123rf 123rflifestyle

Elon Musk is R1.1 trillion richer than at the start of the pandemic

25 September 2020 2:08 PM

The Pretoria native is having an excellent pandemic – much like his über-rich peers.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Money lessons Covid-19 taught – heed them for a brighter, wealthier future

25 September 2020 10:44 AM

Your financial future – even if you have to start over – could be brighter than it would’ve been without the pandemic.

Share this:
Read More arrow_forward

Deputy Chief Justice Raymond Zondo at the state capture inquiry

'It’s sad and awful! Judge Raymond Zondo sounds resigned and defeated'

25 September 2020 9:17 AM

"Zondo’s comments at the end of the hearing; it was just so bleak! A sombre, grim end to a day," says journalist Erin Bates.

Share this:
Read More arrow_forward

cashless-paymentjpg

'SA cash economy about 60% of GDP, moving that to digital would be huge saving'

24 September 2020 8:39 PM

The Covid-19 pandemic's moving us towards a cashless society. Arabile Gumede interviews Ukheshe co-founder, Clayton Hayward.

Share this:
Read More arrow_forward

Small business owners entrepreneurs entrepreneurship 123rf 123rfbusiness

Retail Capital injects R500m into economy through Covid-relief for SMEs

24 September 2020 7:41 PM

'Smaller businesses have largely been ignored'. Arabile Gumede interviews Retail Capital CEO Karl Westvig.

Share this:
Read More arrow_forward

national_lottery.jpg

Diverted Lotto millions: 'Can we please get to holding people to account!'

24 September 2020 6:58 PM

Outa's Stefanie Fick urges the speedy investigation of allegations against the suspended COO of the National Lotteries Commission.

Share this:
Read More arrow_forward

Skyscrapers CBD Johannesburg 123rf 123rfbusiness

Long-term investment case for property in Africa remains intact

24 September 2020 1:38 PM

There’ll be many opportunities for frontier investors in the coming years, says Absa's Somaya Joshua.

Share this:
Read More arrow_forward

villa mansion pool dusk 123rf 123rfbusiness 123rflifestyle

Joburg City Power cuts wealthy Dainfern households for electricity theft

24 September 2020 12:49 PM

"There was resistance," says City Power's Isaac Mangena. "Security told us, 'Why are you here? Politicians stay in this area!'"

Share this:
Read More arrow_forward

Depressed boy child holding smile smiley pretending depression depressed 123rf

Social media: We are puppets. Especially our kids – Netflix documentary

24 September 2020 11:46 AM

We’re lab rats in a social experiment of unapparelled importance. Kieno Kammies interviews Dean McCoubrey of MySociaLife.

Share this:
Read More arrow_forward