LETTER: Get SAA rescue off the ground
Six months after practitioners were appointed to devise a plan for the airline urgent action is needed
Business rescue expertise is sought when a business is in a difficult trading position. Like SAA, Comair has recently opted for this process. This is one of the strategic enablers that is provided by the Companies Act to encourage companies to continue as a going concern.
In the case of SAA there have been counterarguments questioning the benefits of this process.
Business rescue is a voluntary process, and co-operation between the parties is therefore vital for its success. A meeting of minds is extremely important to ensure a successful process.
In the case of SAA what is at stake now is the question of whether it can be retained in its current or a redesigned form.
The business rescue practitioners are reported to have allocated to themselves R30m for their services. It has also been reported that they are at loggerheads with the minister. This is unfortunate — it has been six months since the practitioners were appointed to devise an alternative plan for SAA.
For the sake of the employees and creditors let us not wait too much longer to unveil the SAA rescue plan. Let us think of the lives of citizens who will be heavily affected by this delay.
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