SAA gets yet another R4bn from the state. How will it be used?
It must be clear that this is not a bailout, says Pravin Gordhan
SAA will get R2bn in cash from the national treasury and another R2bn loan guarantee to raise finance from commercial banks to facilitate the business rescue process, public enterprises minister Pravin Gordhan announced on Thursday morning.
The airline, which has been placed in business rescue by its board of directors, had been unable to raise finance from either the treasury or lenders to continue operating. The funding will enable the company to carry on while it is being restructured.
“It must be clear that this is not a bailout. This is the provision of financial assistance in order to facilitate a radical restructure of the airline,” Gordhan said...