It’s probably too late to save SAA

Image: SuppliedThe attempt by trade union Solidarity to save South African Airways by applying for it to be placed in business rescue will most probably fail to prevent the liquidation of the indebted airline.

The airline was already insolvent then. The 2013 annual report showed that total liabilities exceeded assets by R849 million, but this figure included a subordinated loan of R1.3 billion from government as equity – the real figure was negative equity of nearly R2.2 billion. The income statement reported a loss of R1.2 billion in the year to March 2013.

The Werksmans report on business rescue says that a company should commence business rescue as soon it is reasonably unlikely that it will be able to pay its debts when due during the ensuing six months, or when it is likely that the company will become insolvent in the immediate ensuing six months. That the company has failed to pay over any amount in terms of an obligation or contract with respect of employment-related matters; or

Business rescue would do SAA good, if it is possible. A business rescue practitioner will do what management needed to do a long time ago.

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

There's no cash for SAA, says GordhanPublic Enterprises Minister Pravin Gordhan says if the SAA strike continues, there won't be any money to pay salaries next month.
Source: eNCA - 🏆 49. / 51 Read more »

Parliamentary Caucus: President’s men face ANC caucus showdown on SAA stanceIn a potentially damaging development for President Cyril Ramaphosa – with possible negative consequences for the South African economy – Pravin Gordhan has been summoned to defend his actions over SAA to the ANC parliamentary caucus.
Source: dailymaverick - 🏆 3. / 84 Read more »

SAA set to resume some domestic flightsThe Public Enterprises Minister said workers could be at risk of not being paid this month.
Source: eNCA - 🏆 49. / 51 Read more »

Unless Numsa are numbskulls, they know full well SAA is going to crash'As SAA managers and workers brace for impact, all that Numsa has is the spectacle of resistance. It is a performance staged as much for its own members as it is for the state,' writes Tom Eaton.
Source: TimesLIVE - 🏆 28. / 59 Read more »

Unions, SAA still deadlockedThe CCMA continues to mediate between striking unions and SAA as Numsa threatens a full-blown aviation strike.
Source: eNCA - 🏆 49. / 51 Read more »

No end in sight to strike at ailing SAAAs the SAA strike enters its sixth day today, tensions remain high between trade unions and the airline's management.
Source: SowetanLIVE - 🏆 13. / 63 Read more »