SA Express scrambles to extend ZAR640m in loans to avoid debt default
Loss-making SA Express is in last-minute negotiations with banks to extend ZAR640m (US$46.23m) in loans, which fall due at the end of November. If SA Express were to default on its debt, the govt would have to settle it under the guarantee it has extended to the airline, which was allocated a ZAR1.249b bailout in the medium-term budget policy statement. Avril Halstead, the acting deputy director-general for transport enterprises told parliament’s two appropriations committees Friday that engagements with banks were under way to extend the loans for a couple of months in case the money allocated by the budget policy statement did not flow through in time. The remaining debt was staggered over 7 years, but the department wanted to have an upfront payment of the debt because some of it was at high interest rates. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-11-26/unaligned/sa-express-scrambles-to-extend-zar640m-in-loans-to-avoid-debt-default
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SA Express scrambles to extend ZAR640m in loans to avoid debt default
Loss-making SA Express is in last-minute negotiations with banks to extend ZAR640m (US$46.23m) in loans, which fall due at the end of November. If SA Express were to default on its debt, the govt would have to settle it under the guarantee it has extended to the airline, which was allocated a ZAR1.249b bailout in the medium-term budget policy statement. Avril Halstead, the acting deputy director-general for transport enterprises told parliament’s two appropriations committees Friday that engagements with banks were under way to extend the loans for a couple of months in case the money allocated by the budget policy statement did not flow through in time. The remaining debt was staggered over 7 years, but the department wanted to have an upfront payment of the debt because some of it was at high interest rates. <br/>
