EXPLAINER | Why SAA receivership doesn't need to be solvent

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The received account is housing the liabilities of SAA, which SAA will pay in the future.
The received account is housing the liabilities of SAA, which SAA will pay in the future.
Gallo Images/Jacques Stander

The entity created to help South African Airways (SAA) exit business rescue doesn't need to be solvent.

This is according to the receivers – those in charge of a so-called receivership, which was set up once the business rescue practitioners of SAA exited the rescue process and returned the airline to the interim board.

The main role of the two "receivers" – namely SAA's former rescue practitioner, Siviwe Dongwana, and chartered accountant Bongani Nkasana – is to ensure the receipt and distribution of a total of about R3.5 billion due to be paid to general concurrent creditors, lenders and lessors between 2021 to 2023.

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