South African Airways gets US$343m govt bailout
South African Airways has received US$343m from the govt to pay off some of its debts and for capitalisation. In his mid-term budget allocation, Finance minister Tito Mboweni announced the bailout through a Special Appropriation Bill. The funds are to settle a $970m debt due by March next year. "We will do this so as to protect the airline from its creditors calling in on its outstanding $1.11b, which is guaranteed by govt," Mboweni said. The carrier has over $1.3b in govt guaranteed debt, of which at least $1b has been drawn down. The allocation includes $80m to South African Express to cover debt obligations. The South African govt is also pushing for talks between the carrier and its creditors to either refinance it or extend the loan maturity dates to give SAA space to achieve its turnaround plan. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-11-06/star/south-african-airways-gets-us-343m-govt-bailout
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South African Airways gets US$343m govt bailout
South African Airways has received US$343m from the govt to pay off some of its debts and for capitalisation. In his mid-term budget allocation, Finance minister Tito Mboweni announced the bailout through a Special Appropriation Bill. The funds are to settle a $970m debt due by March next year. "We will do this so as to protect the airline from its creditors calling in on its outstanding $1.11b, which is guaranteed by govt," Mboweni said. The carrier has over $1.3b in govt guaranteed debt, of which at least $1b has been drawn down. The allocation includes $80m to South African Express to cover debt obligations. The South African govt is also pushing for talks between the carrier and its creditors to either refinance it or extend the loan maturity dates to give SAA space to achieve its turnaround plan. <br/>
