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SAA Bankruptcy Administrators to Submit Rescue Plan Friday

SAA Bankruptcy Administrators to Submit Rescue Plan on Friday

(Bloomberg) --

South African Airways’ bankruptcy administrators will submit a business rescue plan to the government, creditors and labor unions on Friday and will begin discussions on it next week.

The so-called Business Rescue Practitioners have asked for an extension to their contract until June 8 to complete the work, they said in a statement.

The state-owned airline has been unprofitable since 2011 and has been surviving on government bailouts. While the rescue team has been informed that the National Treasury will not provide further funds, Pravin Gordhan, the country’s public enterprises minister, has insisted that the airline continue to exist in some form.

The government has proposed reviving the airline to the administrators, who had earlier planned to wind it up. Its submission has now been incorporated into the document due to be discussed, the administrators said.

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