Cash-strapped SAA under business rescue

South African Airways (SAA) announced on Thursday that it’s now under business rescue.

According to SAA Spokesperson Tlali Tlali, the move follows a meeting between its board of directors and the Department of Public Enterprises (DPE) where a “unanimous conclusion” to place “the company into business rescue in order to create a better return for the company’s creditors and shareholders,” was reached.

“Furthermore, the company is seeking to minimize the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully,” explained Tlali.

READ: Solidarity lodges application to place SAA under business rescue

Tlali says they understand the uncertainties that may arise due to the decision thus would “engage in targeted communication” with its employees and would support them through this difficult time.

Tlali adds that the airline’s board of director would announce the appointment of business practitioners in due course.

Its new provisional timetable will also be published soon.

Mango flights will operate as scheduled.

Meanwhile, the Standing Committee on Public Accounts (Scopa) will set foot in the national flag carrier airline on Thursday.

The visit is over the airline failing to submit its financial statements.

“The fundamental issue is that there is none compliance with the law. The law is very clear, financial statements must be submitted by the 3rd of September. SAA appeared before us on the 13th and explained why they have not submitted. We were not satisfied with that explanation because amongst other things they has anchored their outlook to not submit on a legal opinion,” said Scopa chairperson, Mkhuleko Hlengwa to eNCA.