SAA could be Pravin Gordhan’s blueprint for other failing SOEs
If using business rescue works for SAA, compared to other turnaround options, the government might be on to something
Everyone is watching the business rescue process at SAA with tremendous interest. While very few people believe that the airline can actually be turned around, there are some valuable lessons to be learnt from the process. And, more particularly, it could be the blueprint for how public enterprises minister Pravin Gordhan and other ministers move forward with our other delinquent sate-owned entities (SOEs).
As we near the extended publishing deadline for the SAA business-rescue plan, all eyes are on the two business rescue practitioners and what they will be negotiating with the SAA creditors. But before we get there, it is worth looking at why the chose business rescue for SAA, and how this could fit into his and the president’s greater SOE strategy. ..