SAA said that the purpose of the funding is to provide a bridge to facilitate the development and publication of the Business Rescue Plan by the Business Rescue Practitioners by the end of February for presentation to creditors shortly thereafter.
JOHANNESBURG - Embattled South African Airways that was bailed out yet again, this time by the Development Bank of South Africa , has explained what the extra funding of R3.5bn will be used for.
SAA said in a statement that the purpose of the funding is to provide a bridge to facilitate the development and publication of the Business Rescue Plan by the Business Rescue Practitioners by the end of February for presentation to creditors shortly thereafter. SAA said in the statement, "The conservation of cash through various cost reduction measures is critical to running an efficient airline and to create a platform on which a future for a restructured entity can be built. The BRPs have been and will continue to review all third party contracts with the entity, with the intention to cancel any onerous contracts or renegotiate others into commercially accepted terms.
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