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SAA Business Rescue plan voted in, new board to be appointed

SAA Business Rescue plan voted in new board to be appointed
SAA Business Rescue plan voted in new board to be appointed

SAA’s business rescue plan has won the vote after a gathering between the airlines creditors, unions and therefore the DPE.

Financially decimated state-owned airline SAA (South African Airways) will plow ahead with the the proposed business rescue plan tabled by Business Rescue Practitioners (BRPs) after SAA’s creditors, and unions related to the corporate , voted in its favour on Tuesday Bastille Day .

This means the revised business rescue plan is approved with governments full support.

STAKEHOLDERS VOTE OVERTLY IN FAVOUR OF SAA BUSINESS RESCUE PLAN

The vote required that a minimum of 75% of stakeholders voted in favour of the proposed plan, and on the day 86% of creditors, unions and other stakeholders cast positive votes

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Earlier, 88% of the stakeholders had voted in favour of amendments to the plan.

The South African Airways Pilots’ Association (Saapa) and therefore the Department of Public Enterprises (DPE) continued to butt heads during the voting process, with the latter accusing the union of trying to exploit the already ailing carrier’s resources dry after submitting further demands upon accepting voluntary severance packages (VSPs) for soon-to-be retrenched employees.

Business Rescue Practitioner Siviwe Dongwana said that the vote was supported by the bulk of stakeholders, both independent and non-independent.

“We have received proxies, and 86% are in favour of the Business Rescue Plan for SAA,” he confirmed. “It is vital that at this stage, in terms of the businesses Act, that during a vote called in terms of the act, the proposed plan are going to be approved on a preliminary basis if it’s supported by 75% of creditors, which is that the case,” he said.

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“The choose support of the proposed plan included a minimum of 50% of independent creditors that were voting. Non-independent interest is a smaller amount than 1%.”

“Without further ado, we’ll issue a notice to the present effect”

NEW BOARD TO BE INSTALLED

The DPE – who are the first stakeholder within the company on behalf of state – also announced on Tuesday that a replacement board are going to be installed at the airline within the next few days, with Phillip Saunders set to be installed as acting CEO.

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Saunders, who was previously installed because the company’s Chief Commercial Officer, will assume the role following the resignation of Vuyani Jarana in June 2019, and acting CEO Zuks Ramasia departure for early retirement in April.

DPE acting director-general Kgathatso Tlhakudi said that Saunders brings a wealth of credibility to the corporate .

“Government within the coming days will announce an interim board for the new SAA,” he said.

“But we are pleased to announce that we’ll have an interim CEO within the name of Phillip Saunders, who may be a very credible airline executive.”

This is a developing story

 

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