SAA Business Rescue Plan Approved By 86% Of Votes At Creditors’ Meeting

THEBE MABANGA

THE South African Airways Business Rescue Plan was approved by 86% of the votes in a virtual creditors and employees meeting held on Tuesday.

The plan required 75% of the vote to succeed.

The Department of Public Enterprises welcomed the move, reiterating its long held view that it is better than liquidation.

“The DPE believes that the favourable vote is a much better outcome for creditors and SAA employees than liquidation, and the government remains confident that the implementation of the business rescue plan will balance the rights and interests of all parties,” the department said in a statement.

The department said its priority now is to “give effect to funding commitments by the government for the business rescue plan” and appoint an interim board.

The department and National Treasury have to give business rescue practitioners an undertaking in writing that there is funding for the plan.

Government