The long-awaited business rescue plan for South African Airways was published late on Tuesday evening.
Under the terms of the plan, government will have to raise more than R10 billion to cover creditors who have funded the airline since it went into business rescue in December, as well as employee severance packages.
The R10 billion extra proposed by the practitioners excludes about R16.4bn in historic government-guaranteed debt already allocated in previous budgets.
pastedGraphic.pngAffected parties will vote on the plan at a date that still has to be set.
The business rescue practitioners, Les Matuson and Siviwe Dongwana, together with their advisors have been trying to obtain strategic equity partners for the flag carrier without success, due to poor market conditions in the global airline industry which has been devastated by the impact of the Covid-19 pandemic.
The proposed restructure envisages an airline that commences with flights "in the near future" as the Covid-19 lockdown eases and domestic air travel restarts. It is envisaged under the restructure that full domestic services will recommence in January 2021, and will be operated by the restructured national airline.