SAA's financial woes

Old Jul 20, 20, 9:35 am
  #271  
 
Join Date: Jul 2005
Posts: 753
Originally Posted by jsnydcsa View Post
Southern & East African Tourism Update
Breaking news: SAA BRPs decline to comment on Govt letter of support
Today 05:15 - by Hilka Birns
SAA’s business rescue practitioners declined to comment this morning on an announcement that a letter of support committing Government to funding the rescue of SAA was delivered to them yesterday.

https://www.dailymaverick.co.za/arti...g-for-new-saa/
It’s not clear how the new money for SAA will be raised by the National Treasury at a time when the government is cash-strapped. It’s also not clear if the Treasury will appropriate the required funds from deteriorating public finances. But they have agreed to do it, and that’s a start. Or an end.

Awful lot of money to buy 2,700 votes of retrenched employees.

This is so weird, they're all now just pointing fingers at each other and saying "we're working on a plan" without saying what it is. Some sort of big secret. They're trying that with the Dear Leader in the USA. See how that's going?
jsnydcsa is offline  
Old Jul 20, 20, 1:05 pm
  #272  
FlyerTalk Evangelist
 
Join Date: Oct 2000
Posts: 12,189
"Government would consider an independent SAA board with a shareholder structure similar to that of the country’s partly state-owned telecom firm Telkom, according to Public Enterprises Minister Pravin Gordhan.He told broadcaster eNCA on Sunday that Telkom was an interesting model that could be considered to find a solution for SAA. However, he remained non-committal as to where the required funds would come from. “Where it comes from, the form it comes, is something that is still being worked on. As we make progress, we will keep the public and Parliament informed,” he said."

Source

Yeah, funds are just a tiny and inconsequential detail. Who knows, perhaps somebody will find a few Rand in a forgotten drawer somewhere. One day. Sometime.

Johan
thijsseh likes this.
johan rebel is offline  
Old Aug 5, 20, 12:33 pm
  #273  
 
Join Date: Jul 2005
Posts: 753
https://www.businesslive.co.za/bd/na...r-new-funding/

SAA stalls again as rescue practitioners wait for new funding
The directors-general of the department of public enterprises and the Treasury have met with banks to persuade them to provide R5.3bn immediately

05 August 2020 - 14:17
The finalisation of the SAA business rescue has again stalled as the rescue practitioners await new funding for the state-owned airline as they are unable to hand back an insolvent entity to management.
The business rescue plan was approved in July and included a commitment from the ministers of public enterprises and the Treasury to “mobilise funding” for the new airline. The rescue practitioners had hoped to wrap up the process this week and hand SAA back to its board and management.
jsnydcsa is offline  
Old Aug 6, 20, 1:45 am
  #274  
FlyerTalk Evangelist
 
Join Date: Oct 2000
Posts: 12,189
Originally Posted by jsnydcsa View Post
The directors-general of the department of public enterprises and the Treasury have met with banks to persuade them to provide R5.3bn immediately
I'm amazed that the banks are not standing in line with suitcases stuffed full of money in their eagerness to keep SAA flying.

Johan
johan rebel is offline  
Old Aug 6, 20, 11:21 am
  #275  
 
Join Date: Mar 2019
Location: Aarhus, DK
Posts: 284
Originally Posted by johan rebel View Post
I'm amazed that the banks are not standing in line with suitcases stuffed full of money in their eagerness to keep SAA flying.
From the banker perspective it can be a weird situation. If SAA keeps getting cash from the goverment then the intrest payment can be quite sizable. It also allows you to be in the good graces of the goverment.
At the same time would you be willing to risk that much. The goverment guarantess a lot of SAA debt but it is the SA goverment. They can run out of cash themselves at any moment as they keep sinking deeper in to junk bond territory.
NextWhiteDeath is offline  

Thread Tools
Search this Thread
Search Engine: