Streaming issues? Report here
CapeTalk logo 2017 1500 x 1500 CapeTalk logo 2017 1500 x 1500
Best of CapeTalk
22:00 - 00:00
volume_up
volume_mute

Up Next: Early Breakfast with Africa Melane
See full line-up
Best of CapeTalk
22:00 - 00:00
Home
arrow_forward
Business

'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...


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

More from Business

DJ raver clubber vinyl record edm rave electronic music 123rf 123rfbusiness

Vinyl records just won’t die

18 September 2020 3:14 PM

Vinyl sales have been trending upwards for a decade. In the past week, Americans – mostly young ones - bought 802 000 copies.

Share this:
Read More arrow_forward

absa-5jpg

Demand for commodities used in lowering carbon emissions will certainly increase

18 September 2020 12:06 PM

There’s an inevitability to it – these commodities (such as vanadium, if the tech improves) have a bright future ahead of them.

Share this:
Read More arrow_forward

South African Airways SAA 123rf 123rfbusiness

SAA creditors set to meet to review plan as govt fails to raise new funding

18 September 2020 10:17 AM

The creditor meeting will be convened to discuss the funding issue and the proposed future of the cash strapped state-owned entity.

Share this:
Read More arrow_forward

car motoring 123rf

'Don't overspend on a car purchase - smaller and cheaper equals better value!'

17 September 2020 9:12 PM

Low interest rates and plenty of deals on offer - personal finance guru Warren Ingram points out the pitfalls on The Money Show.

Share this:
Read More arrow_forward

131022woolworths1 .jpg

Woolworths earnings plummet, but SA food business shows strong growth

17 September 2020 8:58 PM

Woolworths Holdings has released its annual financial results. Bruce Whitfield interviews Group CEO Roy Bagattini.

Share this:
Read More arrow_forward

200319-lesetja-kganyago-edjpg

No change to repo rate - 'Perhaps we've seen the bottom of interest rates'

17 September 2020 8:38 PM

Isaah Mhlanga (Chief Economist, Alexander Forbes) on the reasons for the decision announced by SARB governor Lesetja Kganyago.

Share this:
Read More arrow_forward

Syringe vaccine needle

'A few rich countries have hogged most supplies of future Covid-19 vaccines'

17 September 2020 3:27 PM

Wealthy nations representing 13% of the world’s population already bought 2.7 billion yet-to-be-made vaccines, says Oxfam.

Share this:
Read More arrow_forward

gold-glittersjpg

Inflation is not dead. Gold will continue to glitter once fear subsides

17 September 2020 11:39 AM

There is just so much money-printing going on in the world right now, says Bevan Jones, CEO of African Source Markets.

Share this:
Read More arrow_forward

KPMG 123rf 123rfbusiness

State Capture: 'KPMG, Deloitte, EY, PwC function as a state-sanctioned cartel'

17 September 2020 9:54 AM

"These firms have become so wealthy and powerful," says Michael Marchant (Open Secrets). "Will they ever be held to account?"

Share this:
Read More arrow_forward

City of Cape Town by night 123rf.com

'Cape Town feels it has its season back', says Premier Alan Winde #Level1

17 September 2020 7:59 AM

Winde says Capetonians must grab the opportunity with both hands but we must remain vigilant and avoid a second Covid-19 wave.

Share this:
Read More arrow_forward