SAA looking for R14bn loan
SOUTH African Airways (SAA), the government-owned cash-strapped national carrier, plans to raise R14.45-billion from banks and other financial institutions, days after saying it could pay its debts.
SAA is seeking secured and unsecured funding with a three- to 15-year duration and wants to start drawing down the amount within two weeks of signing the loan agreement, it said in the notice published in a newspaper.
“Three drawdowns are envisaged starting end October,” the firm said, adding that bidders could submit proposals for part or all of the required funding from yesterday until September 16.
“South African Airways requires funding to meet its working and capital requirements as well as to consolidate its current debt portfolio.”
The airline’s spokesman Tlali Tlali could not immediately comment when contacted.
Hong Kong’s tax authorities last week threatened to ground SAA planes if the airline did not provide financial statements by September 6. The airline has failed to submit financial statements for the past two years, with results for 2015/16 held back by National Treasury’s refusal to grant the loss-making carrier R5-billion in additional guarantees.
The DA on Friday called for a parliamentary meeting to work out how to prevent the airline from missing payments to creditors, but SAA has said it was able to pay its debts.
In a statement released last week, Tlali said SAA needs a government guarantee in order to finalise its financial statement.
He said the airline has neither defaulted nor been unable to meet its obligations to service its debts – a key determining factor to justify placing a company under business rescue.
“Those advocating for business rescue are making an absurd misdiagnosis. ”–