Banks lukewarm as SAA seeks proposals to reorganise debt
The troubled airline quietly publishes a request for proposals seeking R16bn in long-term funding
THE decision by South African Airways (SAA) to request proposals to restructure its debt — months after it was forced to extend R7.2bn in loans due in June — has drawn a lukewarm response from some of the big four banks’ investment arms.The airline quietly published the request for proposals on Sunday, seeking R16bn in long-term funding — either secured or unsecured — for working capital, capital expenditure and for consolidation of its R15bn debt.The tender, which opened on Monday, requires the successful bidder to allow SAA to access the R16bn in three tranches from the end of October."We have received the SAA … request for long-term funding and we are considering it like all tenders," said Remo Moyo, divisional executive at Nedbank Corporate and Investment Banking.READ THIS: Is SAA headed for a crash landing?"This tender will be subjected to our internal approval processes, which would guide our response."Standard Bank declined to comment because SAA is a client."We secured [an] ...
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