R16bn SAA bid flies in face of solvency claim
SAA PLANS to raise R16 billion from banks and other financial institutions, days after saying it could pay its debts.
SAA is seeking secured and unsecured funding with a 3 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 the Sunday Times.
“Three drawdowns are envisaged starting at the end of October,” the firm said, adding bidders could submit proposals for part or all of the required funding 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 said.
SAA Spokesman Tlali Tlali could not immediately comment on the matter.
Hong Kong’s tax authorities last week threatened to ground SAA planes if the carrier 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 the Treasury’s refusal to grant the loss-making carrier R5bn in additional guarantees.
On Friday, the DA 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.