The majority of South African Airways’ (SAA’s) creditors voted on June 8 to postpone the publication of the business rescue plan for the State-owned airline until June 15. Their vote was requested by the business rescue practitioners (BRPs) for SAA.
The BRPs called the vote in response to a request from the trade unions representing the majority of SAA’s personnel. These were the National Union of Metalworkers of South Africa, the South African Cabin Crew Association and the South African Airways Pilots Association.
“The [business rescue] practitioners have been consulting on the [business rescue] plan with various stakeholders and to this end have had meaningful engagements with the creditors’ committee on various aspects of the draft plan that was distributed to the creditors’ and employees’ committees,” said the BRPs. “The employees’ committee members decided that they would not want to consult on the draft plan in that forum”.
Instead, the unions wanted to consult through the Leadership Compact Forum (LCF) established by the Department of Public Enterprises. They communicated this desire to the BRPs in writing. But no such consultation had yet taken place.
The law firm representing the three unions had written to the BRPs objecting to the publication of the business rescue plan on June 8, before any consultation in the LCF. They requested an extension until June 15. “[T]he practitioners thought it would not be appropriate to proceed with the publication of the business rescue plan without conveying the request of the unions that represent a majority of the SAA employees,” they explained.
“[T]he practitioners will do everything possible to limit the negative impact of the extension of the publication date,” they assured. “In addition, the extension will not stop the practitioners from taking the necessary steps to progress SAA’s business rescue and the practitioners will continue taking proactive steps in light of the current crisis to conserve cash in SAA and to protect the interests of SAA.”
The publication date of the SAA rescue plan had already been extended four times. Consequently, this is the fifth extension.