Cash-strapped SAA will receive R3.5 bn of emergency funding from the Development Bank of Southern Africa, the airline's business rescue practitioners said.
Johannesburg - Cash-strapped state carrier South African Airways will receive R3.5 billion of emergency funding from the government-owned Development Bank of Southern Africa, the airline's business rescue practitioners said on Tuesday.
SAA is fighting for its survival after it entered a form of bankruptcy protection in December and cancelled some flights because of cash shortages. "We can confirm that the Development Bank of Southern Africa has committed R3.5 billion in funding to the SAA Practitioners, with an immediate draw-down of R2 billion," the team overseeing SAA's bankruptcy-protected restructuring said.
"Funding for the restructuring phase after the business plan is adopted is being considered by potential funders," the practitioners said. SAA has not made a profit since 2011, surviving instead on more than R20 billion in bailouts over the last three years. That has put the country's credit rating and investor confidence under increasing pressure.
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