SAA creditors to meet on Friday over unmet guarantee requirement

A view of SAA airplanes at Cape Town International Airport on February 18, 2020.
A view of SAA airplanes at Cape Town International Airport on February 18, 2020.
Gallo Images/Jacques Stander

The business rescue practitioners of South African Airways have called a creditors' meeting for Friday 24 July, on the basis that a condition set in the business rescue plan has not been met.

The unmet condition relates to government having to provide confirmation satisfactory to the Development Bank of Southern Africa (DBSA) as well as to pre- and post- rescue commencement lenders, that the guarantees issued to them "shall continue in full force and effect until the lender claims are discharged in full as contemplated in the rescue plan".

The purpose of the meeting would be to determine that, if the outstanding condition is not fulfilled by 27 July 2020, the plan will be deemed "unimplementable" and a meeting of creditors will again be convened on 30 July 2020 for Creditors to consider amending the plan.

The rescue practitioners say in a report that they are hopeful to receive the outstanding required "signed guarantee confirmation letter" prior to the meeting scheduled for 24 July 2020.

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