SAA has an outstanding payment amount of R1.5 billion towards business rescue obligations.
This is according to Public Enterprises Minister Pravin Gordhan, who said the balance would be paid when the government allocated funds to the national carrier, which had to date settled some of its obligations from its own resources.
He was responding to written parliamentary questions from DA MP Wendy Alexander, who asked about the status of the SAA business rescue process and the date it was envisaged that customers who were awaiting refunds for unused tickets and other outstanding financial reimbursements would receive their money.
Gordhan said SAA was placed under business rescue due to poor financial performance in December 2019.
“SAA exited business rescue on April 30, 2021, having substantially implemented the business rescue plan and passed both the liquidity and solvency tests.”
He also said the national carrier received from the government R10.5bn of the R14bn required to implement the business rescue plan in the 2020-21 financial year. A further R1bn was received in the 2022-23 financial year.
“The airline has managed to settle some of the business rescue obligations from its own resources and an amount of R1.566bn now remains to complete paying the business rescue obligations,” Gordhan said.
He also said SAA had to date paid R2.5bn of the R3.6bn of unflown ticket liability (UTL) that was outstanding when SAA ceased operations during the business rescue process.
“The airline continues to settle UTL monthly as requests for refund are submitted by passengers. The balance of the UTL not settled from the monthly refunds will be paid when the funds from the government of the outstanding R1.566bn mentioned above are allocated.”
DA MP Ghaleb Cachalia asked about promised funds by Takatso Consortium after Gidon Novick’s resignation from the equity partner, citing the entity’s inability to raise the required funds.
Cachalia said that given that two deadlines have not been met in the recent past, where the R420 million and R428m would be sourced from to reduce the business rescue practitioners’ receivership obligations.
Gordhan said that in terms of the share purchase agreement signed between the Department of Public Enterprises and Takatso Aviation, the required funds will only be provided towards the conclusion of the transaction and after obtaining all the necessary regulatory approvals, including the report of the Competition Tribunal.
“SAA funded the business rescue practitioners’ receivership obligations from its working capital,” he said.
Cape Times
