South African Airways administrators seek more time for rescue plan

Administrators at South African Airways have asked for more time to publish a business rescue plan for the struggling state-owned airline so they can discuss new government restructuring proposals, a letter to creditors showed.

The administrators, who were meant to publish their plan on Friday, have asked for a new deadline of June 8 so they can consult with creditors, employees and the government.

If the delay in publication is approved, they will start those talks on June 1, they said in the letter, dated May 28.

SAA has been fighting for its survival since entering business rescue – a local form of bankruptcy protection – in December, when the administrators took charge of the company after almost a decade of financial losses.

In late March, SAA suspended all commercial passenger flights as the government imposed one of Africa’s strictest coronavirus lockdowns.

The rescue plan for SAA has been delayed several times, first because the administrators said they could not complete such a complex exercise in the 25 days stipulated by law and later because of the massive impact of the COVID-19 pandemic on global aviation. – reuters