'Court will have to rule if SAA is financially distressed'

Trade Union Solidarity is asking the Johannesburg High Court to place the South Africa Airways (SAA) under business rescue.

The union has served the ailing airline and Miniter of Public Enterprises Pravin Gordhan with court papers.

This comes in the midst of a week-long strike by unions who are demanding a salary increase.

It is estimated that SAA has been losing R50 million a day during the strike, which began last Friday.

Refilwe Moloto speaks to business rescue practitioner Louis Klopper about the possibility of placing SAA on business rescue.

RELATED: Is being placed into business rescue the way forward for SAA?

The act is very clear on this matter whether you are a Pty Limited, Close Corporation or an SOE Limited like in this particular case, SAA is subject to the prescripts of the act.

Louis Klopper, Business rescue practitioner

The companies act clearly defines the situation in which a company should go under business rescue and it does live any room to debate.

Louis Klopper, Business rescue practitioner

RELATED: 'We want court to intervene and place SAA in business rescue,' says Solidarity

He adds that the court will base its ruling on the Companies Act.

The court will have to decide whether, in fact, the company which is the subject of debate is financially distressed.

Louis Klopper, Business rescue practitioner

It can be logically concluded that SAA at this particular point in time is financially distressed.

Louis Klopper, Business rescue practitioner

The announcement by the minister that they may not be able to pay salaries on time suggests that SAA is financially distressed, Klopper adds.

The moment you are unable to pay your obligations whether it is salaries or loans you are then deemed to be financially distressed.

Louis Klopper, Business rescue practitioner

Listen to the full interview below...


This article first appeared on CapeTalk : 'Court will have to rule if SAA is financially distressed'


Recommended

by NEWSROOM AI
Read More
Is being placed into business rescue the way forward for SAA?

Is being placed into business rescue the way forward for SAA?

Specialist attorney Gareth Cremen examines the suitability of trade union Solidarity's court application against the airline.

'SAA has actually been trading recklessly for a very long period of time'

'SAA has actually been trading recklessly for a very long period of time'

Senior business rescue practitioner Louis Klopper explains what being placed under business rescue may mean for the airline.

'We want court to intervene and place SAA in business rescue,' says Solidarity

'We want court to intervene and place SAA in business rescue,' says Solidarity

Head of labour legal department Anton van der Bijl explains why the union has filed papers against the airline.

Cabinet wants SAA strike resolved amicably

Cabinet wants SAA strike resolved amicably

Minister in the Presidency Jackson Mthembu was speaking in a post-Cabinet briefing on Thursday.

Numsa serves SAA with secondary strike notice at Air Chefs

Numsa serves SAA with secondary strike notice at Air Chefs

Numsa spokesperson Phakamile Hlubi-Majola says if the current strike has not ended in seven days, members at Air Chefs will join.

Workers abandoning the strike are being intimidated – SAA

Workers abandoning the strike are being intimidated – SAA

The SACAA says SAA is safe, despite union claims to the contrary. SAA is taking legal action, says board member Martin Kingston.

'Pravin Gordhan is part of SAA mess, he is not a saint'

'Pravin Gordhan is part of SAA mess, he is not a saint'

Wits School of Economics and Business Science senior lecture Lumkile Mondi says the South African Airways crisis is self-created.

SAA says some of its domestic operations will resume on Thursday

SAA says some of its domestic operations will resume on Thursday

It is said 200 workers have started going back to work.

SAA strike cost taxpayers R200 million in 4 days

SAA strike cost taxpayers R200 million in 4 days

The Money Show’s Bruce Whitfield asks EWN reporter Sifiso Zulu for the latest on the strike at SAA.

Union telling public not to fly SAA is not OK -  Parly Public Enterprises comm

Union telling public not to fly SAA is not OK - Parly Public Enterprises comm

The portfolio chair Khaya Magaxa says SAA is undergoing a serious challenge of insolvency and an inability to pay its workers.

SA Civil Aviation Authority verifies staff, assures SAA passenger safety

SA Civil Aviation Authority verifies staff, assures SAA passenger safety

SAACA corporate services executive Phindiwe Gwebu says the airline provided it with contingency plans.

Airline safety claims are malicious, says SAA

Airline safety claims are malicious, says SAA

SAA chief commercial officer Phillip Saunders says no pilot will fly an aircraft unless they are confident it is safe.

'The problem is incompetent SAA management staff and thieving'

'The problem is incompetent SAA management staff and thieving'

SAA Pilot's Association former chair, Captain Piet Taljaard says the core does all the work while management is clueless.

Popular articles
Caller shares horrific story of how his twin babies died at Mamelodi Hospital

Caller shares horrific story of how his twin babies died at Mamelodi Hospital

Mike says immediately after the first baby died, a private undertaker called him offering his services to bury the child.