The Department of Public Enterprises has confirmed that it is a step closer to seeing SAA resuming operations, as the BRPs have exited and handed the company over to its interim board.
The Department of Public Enterprises took to Twitter on Monday, 3 May 2021, to confirm the exit of the Business Rescue Practitioners (BRPs) from South African Airways (SAA). The process was started back in December 2019. The BRPs’ exit signals that the running of the troubled state-owned enterprise (SEO) has now been handed over to the interim board.
According to the statement, “The business rescue process enabled the restructuring of SAA, reducing its cost base and its financial liabilities, creating a sustainable baseline going into the future. The BRPs are handing over to the SAA Interim Board a solvent business.” Adding, “However, the department warned that this does not mean the work is done.”
Before concluding, the statement touched on the plan of action, stating, “The Interim Board of SAA is mandated to oversee the strategic, financial and operational management of the subsidiaries of SAA, South African Airways Technical (SAAT), Airchefs and Mango SOC Ltd, and ensure their commercial sustainability. These subsidiaries will need to be restructured and in some instances, the case for continued existence must be assessed.” Moreover, the board will also need to address labour and wage disputes with labour unions and pilot associations.
See the post below.
[Read] The Department of Public Enterprises has welcomed the notice of substantial implementation filed by the Business Rescue Practitioners (BRP), which signals the exit of the BRPs at SAA since the process started in December 2019 @DPE_ZA @flysaa https://t.co/khSo2WDaAK pic.twitter.com/Upk7pa4fDh
— @SAgovnews (@SAgovnews) May 3, 2021