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SAA's future on the line if govt doesn't come up with R2bn funding it promised

16 January 2020 4:44 PM
Tags:
SAA
Tito Mboweni
Business Day
Business rescue
Treasury
funding
Carol Paton
Business rescue practitioners
Les Matuson
South African Airways could be forced into insolvency if Treasury does not provide the funding that it promised in December.

The government has so far failed to deliver on the R2 billion promised by the Treasury to fund the business-rescue process at South African Airways (SAA).

Business Day's Carol Paton reports that without this funding the national airline could be forced to suspend flights by Sunday, 19 January.

SAA was placed in business rescue in December and Les Matuson was appointed to lead the process.

RELATED: Operational future of SAA lies in the hands of business rescue boss Les Matuson

Finance Minister Tito Mboweni on Thursday said the government was still trying to find additional funding for SAA.

Mboweni is due to leave for Switzerland where he'll be attending the World Economic Forum (WEF) annual meeting in Davos.

RELATED: 5 moves Les Matuson needs to make now that he's running the show at SAA

Paton says Treasury has not given a legitimate explanation for why the money has not yet materialised.

The business rescue practitioner still needs this money that they were anticipating would come.

Carol Paton, Deputy editor - Business Day

It's R2 billion from Treasury. Treasury hasn't really explained to us why they didn't get the money after undertaking to do so at the beginning of December.

Carol Paton, Deputy editor - Business Day

The business rescue practitioners are saying by Sunday, they need the money on the table.

Carol Paton, Deputy editor - Business Day

The creditors (the banks) came up with their R2 billion, but the shareholder (The Treasury) did not and they haven't explained why.

Carol Paton, Deputy editor - Business Day

Tito Mboweni says that they are working on it.

Carol Paton, Deputy editor - Business Day

Listen to the coverage on Afternoon Drive with John Maytham:

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16 January 2020 4:44 PM
Tags:
SAA
Tito Mboweni
Business Day
Business rescue
Treasury
funding
Carol Paton
Business rescue practitioners
Les Matuson

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