SAA Creditors Give State More Time to Raise Funds

(Bloomberg) --

Creditors of South African Airways gave the government more time to find the money to fund a rescue of the bankrupt state-owned airline.

At a meeting convened by the airline’s administrators, creditors voted to extend the deadline to July 27 from an initial deadline of July 22.

If the money is not guaranteed by then, another creditors meeting will be held on July 30 to decide the way forward. The administrators have previously said the airline could be liquidated.

The government has committed to “mobilize” the 10.1 billion rand ($603 million). Finance Minister Tito Mboweni said that doesn’t mean the government will provide money and it will instead seek funding from private sources.

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