South African Airways business rescue will fail – OUTA

[Hanno Labuschagne]

South African Airways business rescue will fail – OUTA​

The business rescue plan meant to save South African Airways is unrealistic and doomed to fail.

This is according to the Organisation Undoing Tax Abuse (OUTA), which has called on the government to liquidate the troubled national carrier instead.

Transport Advisor to OUTA Joachim Vermooten stated that the plan – which was conceived by business rescue practitioners Siviwe Dongwana and Les Matuson – was fundamentally flawed.

 

[pinball wizard]

Thank you Sherlock.

 

[vermillon]

What ? Im shocked, this cant be true !

 

[Jola]

Shut it down !!!

ANC vanity project .

 

[Binary_Bark]

No ****, the ANC criminals have their hands on it

 

[Bluray]

There's no accountability whatsoever from this government.

 

[backstreetboy]

 

[The Darkness]

ANC has no choice but to keep bailing them out. That's the issue

 

[Quicks]

There is way, too much corruption at SAA for any bailouts to work. But they know it, and ANC corruption just continue going un-checked. Only way this will stop is when they start throwing people in jail. But that won't ever happen as they are all corrupt and enjoying the high life too much to care about the country or its peasants...

 

[system32]

Thank you Sherlock.

+1

Department of Public Enterprises Minister Pravin Gordhan had requested R20 billion from Treasury for SAA’s business rescue.

Instead, the Department was only granted R10.5 billion, meaning there was a 50% funding shortfall to complete the plan.

Even of they were granted R20billion, SAA would still fail.

 

[Herr der Verboten]

South African Airways business rescue will fail – OUTA​

The business rescue plan meant to save South African Airways is unrealistic and doomed to fail.

This is according to the Organisation Undoing Tax Abuse (OUTA), which has called on the government to liquidate the troubled national carrier instead.

Transport Advisor to OUTA Joachim Vermooten stated that the plan – which was conceived by business rescue practitioners Siviwe Dongwana and Les Matuson – was fundamentally flawed.

More outa hot air

Let's apply this:

me: anc is bound to fail.

Now that showed the anc and at time same time fixed the problems with in then anc.

 

[CommonSense]

Start them up with 1 plane and the few pilots who can fly that.
Then if they make money with that plane (without bail-outs), then they can add another one.

That way if they start losing money (and honsestly, we all know they will lose money faster than the pipe feeds it in), it will be limited and not R10/R20 billion every financial year. But we will still have SAA and the creditors will then not call in all the other debts (which government cannot pay at this moment).

In fact, the argument that creditors will demand repayment of all other debts is actually ridiculous. Everyone knows that government cannot pay back all the loans at once and the creditors will thus get NOTHING. The entities will be declared bankrupt and government may actually default and then the creditors know they will be held with the empty bucket. So NO- No one is going to claim all their money back for other loans as that would be financial suicide for the creditors too.

 

[Herr der Verboten]

...so tired of people trying to be everyone's personal ted blom jesus for the clicks and relevancy

 

[The Darkness]

Start them up with 1 plane and the few pilots who can fly that.
Then if they make money with that plane (without bail-outs), then they can add another one.

That way if they start losing money (and honsestly, we all know they will lose money faster than the pipe feeds it in), it will be limited and not R10/R20 billion every financial year. But we will still have SAA and the creditors will then not call in all the other debts (which government cannot pay at this moment).

In fact, the argument that creditors will demand repayment of all other debts is actually ridiculous. Everyone knows that government cannot pay back all the loans at once and the creditors will thus get NOTHING. The entities will be declared bankrupt and government may actually default and then the creditors know they will be held with the empty bucket. So NO- No one is going to claim all their money back for other loans as that would be financial suicide for the creditors too.

It's impossible for them to make it a profit-generating business. There is too much corruption right through the line, unfortunately. Right now, the ANC has to keep throwing debt money at this so as to avoid business rescue/bankruptcy, since all of the money they dished out to SAA is actually loaned money, backed by Government. If it forecloses, then the debt will be called on, which will tank a lot of things in the wake. It's a classic case of ultra-poor leadership causing a noosed neck walking a tightrope.

 

[CommonSense]

It's impossible for them to make it a profit-generating business. There is too much corruption right through the line, unfortunately. Right now, the ANC has to keep throwing debt money at this so as to avoid business rescue/bankruptcy, since all of the money they dished out to SAA is actually loaned money, backed by Government. If it forecloses, then the debt will be called on, which will tank a lot of things in the wake. It's a classic case of ultra-poor leadership causing a noosed neck walking a tightrope.

We all know that. That is why I said if they want to keep it as a "going concern" (Really now!), then limit the losses. That way we still technically have SAA with its accompanying corruption, but the scope for that corruption will be very much limited to how much they can hide behind the ops for that one plane. So no foreclosure and the current creditors will eventually still have to be paid back, but at lest the scope for creating new astronomical debt will be very much limited (that is if a sensibly sized organization goes with that 1 plane - make it part of another SOE for that matter)

 

[The Darkness]

We all know that. That is why I said if they want to keep it as a "going concern" (Really now!), then limit the losses. That way we still technically have SAA with its accompanying corruption, but the scope for that corruption will be very much limited to how much they can hide behind the ops for that one plane. So no foreclosure and the current creditors will eventually still have to be paid back, but at lest the scope for creating new astronomical debt will be very much limited (that is if a sensibly sized organization goes with that 1 plane - make it part of another SOE for that matter)

Except that their aim isn't to do that, it's to loot as much as possible. If being honest, diligent and honorable was important, then we'd never have ever been in this mess. I agree with what you're saying though, and it makes sense. I think we'd sooner see unicorns though.

 

[The_Librarian]

What ? Im shocked, this cant be true !

Squirrel? Is that you?

 

[smc]

Leaving aside the guaranteed failure part, the problem I see is that they are almost certainly going to get sued by any creditor whose payout has been reduced in this "new" plan. The creditors voted for a specific plan, not for government/the BRP practitioners to make it up as as they go along, which is what is happening now.

 

[McGuywer]

dexterity

I learned a new word today.

 

[Shadowchaser1]

Whoever provides them with credit should be fired. SAA need about another R15-25 billion. Unreal that they are hellbent on keeping it afloat.