SAA business rescue plan approved

By Bonga Dlulane for EWN 

The South African Airways (SAA) business rescue plan (BRP) has been approved by 86% of the vote at Tuesday’s creditors’ meeting.

This paves the way for the Department of Public Enterprises (DPE) to launch a new airline with an interim board and CEO.

The department will announce a new board soon and the interim CEO of the airline is Phillip Saunders.

The approval of the plan comes after months of public spats between the department, unions and business rescue practitioners.

It’s a major win for the department as it has fought for SAA to be restructured and not liquidated.

The new airline will need approximately R16 billion to get off the ground and pay creditors.

Money will also be needed for the 1,000 staff who will be hired to be part of the airline.

With the approval of the plan, voluntary severance packages will be paid to over 2,700 employees who will now be retrenched.

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