Creditors will on Tuesday vote in favour or reject the South African Airways (SAA) Business Rescue Practitioners’ revised rescue plan.
Government has called on creditors, unions and other stakeholders to vote in favour of the business rescue plan.
The Department of Public Enterprises says this is the only realistic path to restructure the airline and for a new national carrier to emerge.
A vote in favour of the plan by 75% of the voting interests would be required to carry the vote.
Should creditors vote not to support the business rescue plan, SAA would face liquidation.
In a statement, the Department of Public Enterprises says cabinet has also expressed its support for the concerted effort to mobilise funding from various sources to finance the business rescue plan.
Should SAA be liquidated, every employee, no matter the numbers of years spent at the airline, will receive only a capped severance settlement of R32 000 and lose all other benefits.
Below is media statement from the Department of Public Enterprises urging creditors, unions and other stakeholders to vote in favour of a business rescue plan for SAA:
Media Release DPE URGES CREDITORS to VOTE for a PATHWAY to a NEW SAA (Text)
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