Huge SAA flight cancellations

Jopie Fourie said:
I see news24 updated their article. Solidarity claims the ANC was forced into taking this decision in an attempt to control the process. Solidarity also said that the ANC cannot do this as they already launched the court application. This is great news. The ANC must be kept out of this at all costs.
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ANC?
 
Jopie Fourie said:
From all the business rescue applications I know of personally, not a single company came out alive at the other end. They all ended up in liquidation. None of them were even remotely close to the dire situation of the SAA.
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I doubt you personally know of every single business rescue application. There are many cases out there, from small to as large as Group 5. A business doesn't have to be in deep financial trouble to apply for business rescue.
 
ForceFate said:
Blaming them on the decision they took and not as a cause of SAA woes.
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Lol, they're shifting blame. It's not much of a decision when insurance cover gets pulled, the decision was pretty much made for them. No person with two braincells would even question it. If people lose their jobs it's got fsckall to do with flight centre. It's rich coming from a union when they know the **** saa is in and then carry on striking, they're arguing over the colour of the deck chairs while the titanic is busy sinking with it's stern in the air.
 
ponder said:
Lol, they're shifting blame. It's not much of a decision when insurance cover gets pulled, the decision was pretty much made for them. No person with two braincells would even question it. If people lose their jobs it's got fsckall to do with flight centre. It's rich coming from a union when they know the **** saa is in and then carry on striking, they're arguing over the colour of the deck chairs while the titanic is busy sinking with it's stern in the air.
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It has nothing to do with flight centre. We all agree on that. I read the article about FEDUSA's statement on the matter. I don't know if I missed it but they're not blaming SAA's crash and burn on Flight Centre. So, no one has said #whitefault as @smi puts it, yet.
 
So.... I just read on daily maverick that the state is still going to inject 2bn in loans. How is the business rescue protecting the tax payer if tax money is STILL being used in a failing company.

Government pledged R2-billion in what’s described as “post commencement finance” directly from the national purse in “a fiscally neutral manner”, according to Gordhan’s statement. In addition, a government guarantee to lenders for another R2-billion to SAA “repayable out of future Budget appropriations in order for the business rescue process to commence and to enable SAA to continue to operate”.
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www.dailymaverick.co.za

R4bn and business rescue to put wind beneath SAA's wings

SAA is in business rescue as of right now – with a price tag totalling R4-billion in cash and government guarantees, even if some of the T&Cs remain outstanding. …
www.dailymaverick.co.za www.dailymaverick.co.za
 
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Kosmik said:
So.... I just read on daily maverick that the state is still going to inject 2bn in loans. How is the business rescue protecting the tax payer of tax money is STILL being used in a failing company.



www.dailymaverick.co.za

R4bn and business rescue to put wind beneath SAA's wings

SAA is in business rescue as of right now – with a price tag totalling R4-billion in cash and government guarantees, even if some of the T&Cs remain outstanding. …
www.dailymaverick.co.za www.dailymaverick.co.za
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I was just going to post the same link. The difference is that business rescue allows tough decisions to be made, and its not an open-ended bailout

AFAIK the government guarantees would have been payable anyway in the event of a liquidation, so this is a more orderly process.
 
Kosmik said:
So.... I just read on daily maverick that the state is still going to inject 2bn in loans. How is the business rescue protecting the tax payer if tax money is STILL being used in a failing company.



www.dailymaverick.co.za

R4bn and business rescue to put wind beneath SAA's wings

SAA is in business rescue as of right now – with a price tag totalling R4-billion in cash and government guarantees, even if some of the T&Cs remain outstanding. …
www.dailymaverick.co.za www.dailymaverick.co.za
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Yes, because creditors needs to be paid to ensure they do not call up all debt. These payments / bailouts will likely continue for many years after the SAA has gone into liquidation and closed down. The government currently fears creditors calling up all debt on all SOE's due to the cross default clause in their agreements.

Like I said before, all creditors will be fine. They are all likely to get all their debt repaid, even if SAA goes down. They are also likely not to lose a single cent.
 
ForceFate said:
I doubt you personally know of every single business rescue application. There are many cases out there, from small to as large as Group 5. A business doesn't have to be in deep financial trouble to apply for business rescue.
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It is prudent to apply for business rescue when the financial trouble is shallow and relatively easier to fix, but it seems that business rescue data shows that a large majority of business rescue only occurs when the company is in deep financial trouble and correspondingly it seems a large majority of companies in deep financial trouble never recover when placed in business rescue and are eventually closed permanently.
 
Mystic Twilight said:
It is prudent to apply for business rescue when the financial trouble is shallow and relatively easier to fix, but it seems that business rescue data shows that a large majority of business rescue only occurs when the company is in deep financial trouble and correspondingly it seems a large majority of companies in deep financial trouble never recover when placed in business rescue and are eventually closed permanently.
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This^^^
 
smi said:
No, but Gov haven't used it re SAA. Normally there would have been some nuanced reference / blame. Everything else is #whitesfault apparently
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It's usually the likes of Masina that resort to mud politics when they're out of depth and out of breath. SAA is entirely ANC's doing, and largely result of the past 10 years.
 
Jopie Fourie said:
From all the business rescue applications I know of personally, not a single company came out alive at the other end. They all ended up in liquidation. None of them were even remotely close to the dire situation of the SAA.
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African Bank came out of curatorship (which is business rescue for banks)
 
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