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SAA has adopted a resolution to place the company into business rescue at the earliest opportunity.
It said in a statement, released this morning, it would “endeavour to operate a new provisional timetable and would publish details shortly”. Services operated by subsidiary airline, Mango, would continue as usual and as scheduled.
“The SAA Board of Directors and the Executive Committee have been in consultations with the shareholder, the Department of Public Enterprises (DPE), in an effort to find a solution to our company’s well-documented financial challenges.
“The considered and unanimous conclusion has been to place the company into business rescue in order to create a better return for the company’s creditors and shareholders, than would result from any other available solution.
“Furthermore, the company is seeking to minimize the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully.”
The appointment of business practitioners would be announced in the near future, the airline said.