Recapitalisation the only option for SA Express as banks refuse to lend it cash
South African Express needs to be recapitalised as its bankers are refusing to provide the struggling airline with further loans. GM in the CEO’s office, Edwin Besa, told members of Parliament’s public enterprises committee on Wednesday that the banks had realised SA Express could no longer rely on bank loans (underpinned by government guarantees) and needed to be recapitalised. "They have made it clear that without a clear turnaround plan and confirmed support from government for recapitalisation, they will not give us any more loans," Besa said in a briefing to the committee He said it was "very urgent" that SA Express be recapitalised for it to be sustainable. This would enable it to repay its bank loans and finalise the going-concern problem, which has been holding up the finalisation of the 2016-17 financial statements. SA Express acting chief financial officer Mpho Selepe said recapitalisation would allow the airline to recruit skilled staff and have enough spares to keep its ...
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