SAA administrators will not sell assets without involving govt: memorandum By Reuters

© Reuters.

JOHANNESBURG (Reuters) – Administrators at state-owned South African Airways (SAA) will not sell assets for an interim period without involving the government, a memorandum signed by one of the administrators and the public enterprises ministry showed.

The memorandum, which was seen by Reuters, also said the administrators and the ministry had agreed that the objective of SAA’s bankruptcy protection process was to have a restructured SAA or a new company with no reliance on public finances.

A public enterprises ministry spokesman confirmed the memorandum was an authentic document.

The administrators were not immediately available for comment.

SAA’s administrators, appointed in December to try to rescue the firm, have said previously that a wind-down or liquidation of the loss-making airline were likely outcomes.

Senior officials at the public enterprises ministry have criticised the administrators for not coming up with a “business rescue plan” for SAA sooner and recently hired an aviation consultancy to advise them.

The “interim period” during which the administrators will not sell assets without consulting the ministry lasts until June 30 at the latest, the memorandum said.

SAA has not made a profit since 2011 and has received bailouts worth more than 20 billion rand ($1.1 billion) over the past three years. It is running low on cash after the coronavirus pandemic forced it to halt all commercial passenger flights and the government told the administrators it would not provide further funding.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*