South African Airways’ restructuring plan has been pushed back to the end of March, as the airline’s business rescue practitioners seek further time to address the complexity of the effort.
The practitioners have informed that the extension of the deadline to publish the plan – from 28 February to 31 March – has been approved by the required majority of creditors with voting interests in SAA.
“We are still in the process of finalising the steps to implement the proposed restructuring option as well as the anticipated effect the plan will have on stakeholders – including the estimated return to creditors,” state the practitioners, Siviwe Dongwana and Les Matuson.
They adds that the one-month extension will allow “sufficient time” to finalise the plan, pointing out the “complexity and extent of engagement” required for a company the size of SAA.
Once it has been prepared, the plan will be communicated to a creditors’ committee and employees’ committee and the shareholder – the South African government – giving them a chance to make representation prior to formal publication. Creditors will then vote on the plan, within 10 days of publication.
