Long-delayed developments starting to unfold:
https://www.fin24.com/Companies/Indu...rders-20191204
President Cyril Ramaphosa has decided that cash-strapped flag carrier South African Airways must go into voluntary business rescue, according to a letter signed by presidency director-general Cassius Lubisi.
The letter, dated December 4, says Cabinet initially adopted an approach that entailed restructuring the struggling airline. However, it adds that "developments have now necessitated a change of approach" to address the "dire situation".
"In this regard, SAA will have to urgently go into voluntary business rescue," it says.
Business rescue, under Chapter 6 of the Companies Act, allows South African companies in "financial distress" or trading in insolvent circumstances to
file for business rescue. Once a resolution has been adopted, a business rescue practitioner is appointed to reorganise and restructure the business.
Parliament's oversight committee on public accounts, which was set to meet with the airline's leadership on Thursday, welcomed the business rescue announcement. "The committee has been informed that this is the only viable route to avoid an uncontrolled implosion of the national airline. Scopa is made to understand that an administrator will move in and the board will effectively not be in charge," said its chairperson Mkhuleko Hlengwa in a statement.