Two options for SAA: wind down or throw in the towel
Practitioners say that if employees do not accept the proposed wind-down, they will be unable to continue with the business rescue process
SAA’s business rescue practitioners, who have proposed a winding down process that involves retrenching all employees, say they have two choices: either carry on and implement that plan or throw in the towel and apply for liquidation.
A wind-down would give employees a better claim on termination pay than a liquidation, but for this to happen employees must provide their consent, which they have not done so far. The company does not have funds to pay salaries beyond April after the government refused to give it more cash.