How much SAA owes
TO WHICH BANKS? TWO IN SA HAVE EXPOSURE TOTALLING R5.2BN
Aircraft leasing companies comprise 21 of the 24 largest creditors.
The publication on Tuesday evening of the much-delayed business rescue plan for South African Airways (SAA) reveals that creditor claims could total as much as R38.4 billion.
This excludes the R9.2 billion owed to local banks and financial institutions before the company was placed in business rescue. A further R2 billion in finance post the airline entering business rescue was provided by five commercial banks, with the R3.5 billion loan from the Development Bank of SA (DBSA) on top of that.
An allocation totalling R16.4 billion to repay the bank lenders was announced by National Treasury in the February budget. This was never a new “bailout” as these loans had been guaranteed by government.
The business rescue plan for the first time reveals how much funding has been provided by which institution. Between them, Absa and Nedbank have exposure totalling R5.2 billion. FirstRand is the least exposed, with R949 million in funding (including the loan provided by Ashburton). These amounts do not include any capitalised interest since the airline was placed in business rescue. Nedbank: Term loan – R1.8bn Absa: Term loan – R1.7bn Investec: Term loan – R1.27bn
Standard Bank: Structured loans – R1.06bn
Nedbank: Subordinated long term loan – R784.7m FirstRand: Term loan – R585m Absa: Bridge – R558.5m
Investec Asset Management (now Ninety One): Term loan – R253.1m
FirstRand: General banking facility – R250m
Nedbank: General banking facility – R200m
Standard Bank: General banking facility – R250m Sanlam: Term loan – R168.8m Absa: Call loan – R130m Ashburton Investments (part of FirstRand): Term loan – R113.9m
Momentum: Term loan – R105.5m
Of the R2 billion in post-commencement finance (PCF) provided by the five banks, 60% (or R1.2 billion) was stumped up by Absa and Nedbank. This PCF funding is due to be repaid by 31 July.
Under the R16.4 billion allocation from Treasury, the
R3.5 billion DBSA loan plus R168 million in interest will be repaid this fiscal year. A further R3.8 billion will be repaid to local banks and finance institutions this year, with the same amount to be paid next year. The balance (R1.6 billion) will be paid in 2022/23. The payments exclude interest.
The list of creditors runs to 33 pages, with more than 1 000 separate claims registered. Many are from the same company. The R38.381 billion total is the worst case contemplated as it uses the greater amount between a creditor’s claim and SAA’s records.
In many cases, SAA has no record of claims. In other cases, its records show a vastly larger sum owed than the creditor’s claim.
Aircraft leasing companies comprise 21 of the 24 largest creditors.
Only 89 claims (of the more than 1 000) are listed as “verified and approved” in the business rescue plan.
The practitioners say R600 million will be made available to pay concurrent creditors.
Leasing companies will receive a total of R1.7 billion. – Moneyweb
Payments exclude interest, estimated at R1.8bn