COMPANY NEWS IN BRIEF
SAA no longer technically insolvent
SAA is no longer technically insolvent, and had a net equity value of R1 billion at the end of 2022, National Treasury told Parliament on Wednesday.
This raises the key question of whether next week's national budget will see funding allocated for the embattled airline to settle the last of its legacy debt.
Treasury's Asset and Liability Management Division this week briefed the Standing Committee on Appropriations about the situation at state-owned enterprises, including SAA, Eskom, Transnet, and Denel.
According to Treasury, SAA had net group losses for the first three quarters of the current financial year, amounting to R50 million. However, it pointed out that this is a significant improvement on the predicted budgeted loss of R637 million.
SAA's legacy debt includes the third and final payment of a receivership created when SAA exited business rescue in April 2021. At the time, SAA's shareholder, the Department of Public Enterprises (DPE) estimated that about R3.5 billion was needed to cover all of SAA's legacy debt, including what was owed via the receivership liabilities. It is unclear how much is still outstanding.
All eyes are now on Finance Minister Enoch Godongwana to see if he allocates SAA the necessary funding in his Budget speech next week to enable the airline to settle the last tranche of the receivership, due by August this year.
SAA's chosen strategic equity partner, the Takatso Consortium, has made it clear that it will not take responsibility for any of the airline's legacy debt.-Fin24
SAA is no longer technically insolvent, and had a net equity value of R1 billion at the end of 2022, National Treasury told Parliament on Wednesday.
This raises the key question of whether next week's national budget will see funding allocated for the embattled airline to settle the last of its legacy debt.
Treasury's Asset and Liability Management Division this week briefed the Standing Committee on Appropriations about the situation at state-owned enterprises, including SAA, Eskom, Transnet, and Denel.
According to Treasury, SAA had net group losses for the first three quarters of the current financial year, amounting to R50 million. However, it pointed out that this is a significant improvement on the predicted budgeted loss of R637 million.
SAA's legacy debt includes the third and final payment of a receivership created when SAA exited business rescue in April 2021. At the time, SAA's shareholder, the Department of Public Enterprises (DPE) estimated that about R3.5 billion was needed to cover all of SAA's legacy debt, including what was owed via the receivership liabilities. It is unclear how much is still outstanding.
All eyes are now on Finance Minister Enoch Godongwana to see if he allocates SAA the necessary funding in his Budget speech next week to enable the airline to settle the last tranche of the receivership, due by August this year.
SAA's chosen strategic equity partner, the Takatso Consortium, has made it clear that it will not take responsibility for any of the airline's legacy debt.-Fin24
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