SAA rescue gets mixed reactions

By law, trade unions are not required to have a seat at the table during the selection of a business rescue practitioner – according to business rescue experts, meaning their fight to ensure inclusion in the process of selecting South African Airways’ (SAA’s) practitioner may be in vain.

According to one expert, their participation could even affect the independence of the process, making it unlikely that they will be granted a say in the matter.

This comes after SAA announced on Thursday night that they had selected a practitioner to lead them through the business rescue process.

SAA spokesperson Tlali Tlali said: “The Companies and Intellectual Property Commission has processed the appointment of the business rescue practitioner, Les Matuson from Matuson Associates in South African Airways’ voluntary business rescue process.”

Supporting the move by the state-owned company was the department of public enterprises.

Spokesperson for the department Sam Mkokeli said that although the department was not a part of the selection process, they were “fully behind the decision”.

Workers’ unions affiliated to SAA were, however, outraged by this move, questioning the transparency of the process and demanding for a seat on the table.

Business Rescue Exchange chief executive officer Adriaan Smuts said it was up to the company’s board to decide whether they wanted to include the unions in the selection of the business rescue practitioner, not an obligation.

He explained that if the trade unions got involved, it could raise concerns from the creditors.

He said it was important that the board chose an independent and impartial practitioner who was unbiased about all the role players which included the creditors, stakeholders and employees.

Smuts said it would have been an honour if he was chosen to do the job but he would not have opted to do it alone.

“It would be an interesting challenge.

“I would have had a sidekick, a joint partner to assist me,” he said.

However, he said according to the reports he had seen, there was “nothing to be concerned about” where the appointment of Matuson was concerned.

Senior business rescue practitioner at Corporate Business Rescue and practicing lawyer George Nell also shared Smut’s enthusiasm for the job and said it was of “national importance”.

However, he said he knew that Matuson had years of experience and that he was a well-respected practitioner in the field.