SAA's financial woes
Jul 20, 2020, 9:35 am
#271
Join Date: Jul 2005
Posts: 1,077
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.
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?
Jul 20, 2020, 1:05 pm
#272
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
"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
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
Aug 5, 2020, 12:33 pm
#273
Join Date: Jul 2005
Posts: 1,077
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.
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.
Aug 6, 2020, 1:45 am
#274
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
Johan
Aug 6, 2020, 11:21 am
#275
Join Date: Mar 2019
Location: DK
Programs: A3 Gold, BA Silver
Posts: 869
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.
Sep 6, 2020, 6:39 am
#277
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
Hasn't been that much news recently, but take a look here:
SAA starts retrenching without Funding
Doesn't sound very promising, does it?
Johan
SAA starts retrenching without Funding
Doesn't sound very promising, does it?
Johan
Sep 11, 2020, 8:42 am
#278
Join Date: Jul 2005
Posts: 1,077
https://www.tourismupdate.co.za/arti...eatens-new-saa
Funding failure threatens new SAA
Today 09:11 - by Tessa Reed
SAA’s business rescue practitioners have warned that failure to secure outstanding funding from government by next week could derail the business rescue process completely.
The BRPs issued a notice to affected persons on Thursday stating that procuring the required funding was one of two outstanding issues that were critical to the implementation of the adopted business rescue plan. The other is the termination of existing aircraft leases.
Louise Brugman, spokesperson for the BRPs, told Tourism Update that while the government had paid approximately R9.3bn (€468m) to lenders, no money had been released of the roughly R10.2bn (€513m) required for restructure.
Moreover, Brugman says the immediate requirement is for roughly R5bn (€251m), which is needed by next week to continue the business rescue. This includes R800m (€40.2m) required for creditors, R2.2bn (€110m) for restarting costs and R2bn (€100m) for voluntary severance and retrenchment packages.
“The BRPs have been engaging tirelessly with Government to ensure that this funding is made available to the company timeously,” the notice reads. “In the ongoing engagements on this issue, Government has continued to express its commitment to making this funding available and has undertaken to do so during the course of next week.”
The BRPs said in the notice that they had undertaken to advise affected persons of the progress made in advancing this funding on September 17, and that, should they not be satisfied that sufficient progress had been made, a meeting with creditors would be convened on September 18.
The BRPs said in the notice that SAA had entered into termination agreements in respect of 33 of the 40 aircraft leases and hoped the termination of the remaining aircraft leases would be finalised at the end of the month. In the event of failure to do so, SAA will have to institute legal proceedings to cancel these leases.
In response to the BRPs’ notice, the Department of Public Enterprises issued a public statement. While it made no commitment to advance funds by any specified time, the department said it remained confident that a solution would be found in time to avoid liquidation of SAA.
“[E]fforts to finalise the South African Airways business rescue process and the restructuring of the airline are ongoing and a decision on the sources of funding will be announced soon,” the statement reads. “The DPE welcomes the decision of the BRP to keep the creditors informed about the process and the likelihood of a meeting of the creditors' committee.”
The department also said it continued to assess unsolicited expressions of interest for the new SAA. “A number of engagements have been undertaken with the potential partners, and the interest is encouraging that a suitable long-term investor will be found to enable the relaunch of the airline and its subsidiary businesses and divisions.”
Funding failure threatens new SAA
Today 09:11 - by Tessa Reed
SAA’s business rescue practitioners have warned that failure to secure outstanding funding from government by next week could derail the business rescue process completely.
The BRPs issued a notice to affected persons on Thursday stating that procuring the required funding was one of two outstanding issues that were critical to the implementation of the adopted business rescue plan. The other is the termination of existing aircraft leases.
Louise Brugman, spokesperson for the BRPs, told Tourism Update that while the government had paid approximately R9.3bn (€468m) to lenders, no money had been released of the roughly R10.2bn (€513m) required for restructure.
Moreover, Brugman says the immediate requirement is for roughly R5bn (€251m), which is needed by next week to continue the business rescue. This includes R800m (€40.2m) required for creditors, R2.2bn (€110m) for restarting costs and R2bn (€100m) for voluntary severance and retrenchment packages.
“The BRPs have been engaging tirelessly with Government to ensure that this funding is made available to the company timeously,” the notice reads. “In the ongoing engagements on this issue, Government has continued to express its commitment to making this funding available and has undertaken to do so during the course of next week.”
The BRPs said in the notice that they had undertaken to advise affected persons of the progress made in advancing this funding on September 17, and that, should they not be satisfied that sufficient progress had been made, a meeting with creditors would be convened on September 18.
The BRPs said in the notice that SAA had entered into termination agreements in respect of 33 of the 40 aircraft leases and hoped the termination of the remaining aircraft leases would be finalised at the end of the month. In the event of failure to do so, SAA will have to institute legal proceedings to cancel these leases.
In response to the BRPs’ notice, the Department of Public Enterprises issued a public statement. While it made no commitment to advance funds by any specified time, the department said it remained confident that a solution would be found in time to avoid liquidation of SAA.
“[E]fforts to finalise the South African Airways business rescue process and the restructuring of the airline are ongoing and a decision on the sources of funding will be announced soon,” the statement reads. “The DPE welcomes the decision of the BRP to keep the creditors informed about the process and the likelihood of a meeting of the creditors' committee.”
The department also said it continued to assess unsolicited expressions of interest for the new SAA. “A number of engagements have been undertaken with the potential partners, and the interest is encouraging that a suitable long-term investor will be found to enable the relaunch of the airline and its subsidiary businesses and divisions.”
Sep 16, 2020, 6:57 pm
#280
Join Date: Mar 2017
Posts: 556
Considering United's announcement last week of beginning a nonstop IAD-ACC flight in early 2021, does this say, between the lines, something about SAA's future? This was part of one of SAA's two routes to the US (JNB-ACC-IAD). Because UA and SAA are both members of Star Alliance, I don't see UA operating this route if SAA is planning to resume it.
Sep 17, 2020, 2:41 pm
#281
FlyerTalk Evangelist
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
Considering United's announcement last week of beginning a nonstop IAD-ACC flight in early 2021, does this say, between the lines, something about SAA's future? This was part of one of SAA's two routes to the US (JNB-ACC-IAD). Because UA and SAA are both members of Star Alliance, I don't see UA operating this route if SAA is planning to resume it.
Sep 18, 2020, 8:50 am
#282
Join Date: Jul 2005
Posts: 1,077
Two headlines with 24 hours of each other:
1) https://www.businesslive.co.za/bd/na...as-funds-fail/
2) https://www.businesslive.co.za/bd/na...ovide-funding/
And....
https://www.tourismupdate.co.za/arti...omise-saa-brps
Never ends.....
1) https://www.businesslive.co.za/bd/na...as-funds-fail/
2) https://www.businesslive.co.za/bd/na...ovide-funding/
And....
https://www.tourismupdate.co.za/arti...omise-saa-brps
Never ends.....
Sep 18, 2020, 8:51 pm
#283
FlyerTalk Evangelist
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
Two headlines with 24 hours of each other:
1) https://www.businesslive.co.za/bd/na...as-funds-fail/
2) https://www.businesslive.co.za/bd/na...ovide-funding/
And....
https://www.tourismupdate.co.za/arti...omise-saa-brps
Never ends.....
1) https://www.businesslive.co.za/bd/na...as-funds-fail/
2) https://www.businesslive.co.za/bd/na...ovide-funding/
And....
https://www.tourismupdate.co.za/arti...omise-saa-brps
Never ends.....
Sep 29, 2020, 10:54 am
#285
Join Date: Jul 2005
Posts: 1,077
The Curtain May be Drawing Closed on the Drama
https://www.businesslive.co.za/bd/na...g-falls-short/
Don't have full access to the premium article right now but...
BREAKING NEWS: SAA suspends operations as funding falls short
The full R10.5bn could not be secured so all airline operations are to be placed under ‘care and maintenance’
BL PREMIUM
29 September 2020 - 18:15 Carol Paton
The SAA business rescue practitioners have suspended all airline operations after efforts by the Treasury and the department of public enterprises failed to raise sufficient loan funding from commercial banks to restart operations.
This means SAA will complete repatriation flights that have already been scheduled but will not schedule any further flights. All operations will be placed under “care and maintenance” with only essential safety and maintenance work undertaken.
Don't have full access to the premium article right now but...
BREAKING NEWS: SAA suspends operations as funding falls short
The full R10.5bn could not be secured so all airline operations are to be placed under ‘care and maintenance’
BL PREMIUM
29 September 2020 - 18:15 Carol Paton
The SAA business rescue practitioners have suspended all airline operations after efforts by the Treasury and the department of public enterprises failed to raise sufficient loan funding from commercial banks to restart operations.
This means SAA will complete repatriation flights that have already been scheduled but will not schedule any further flights. All operations will be placed under “care and maintenance” with only essential safety and maintenance work undertaken.