South African Airways’ suppliers cutting exposure to carrier
SAA’s suppliers are slashing payment periods to reduce the risk of losing out from a collapse of the troubled carrier, which is struggling to pay lenders ZAR5b (US$361m) due by the end of this month. Companies with contracts with SAA are cutting settlement terms to 7 days from 21 days as the creditor deadline looms, interim CFO Deon Fredericks said. The National Treasury is working to facilitate the payment, with the process “well under way,” he said. “The problem with turning SAA around is that the board has to continuously focus on the funding issues rather than getting on with the operational plan,” said Fredericks. If the ZAR5b payment is made, SAA will then have to find ZAR9.2b of short-term loans due by the end of March. “The banks are not as friendly as they used to be,” Public Enterprises minister Pravin Gordhan said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-11-28/star/south-african-airways2019-suppliers-cutting-exposure-to-carrier
https://portal.staralliance.com/cms/logo.png
South African Airways’ suppliers cutting exposure to carrier
SAA’s suppliers are slashing payment periods to reduce the risk of losing out from a collapse of the troubled carrier, which is struggling to pay lenders ZAR5b (US$361m) due by the end of this month. Companies with contracts with SAA are cutting settlement terms to 7 days from 21 days as the creditor deadline looms, interim CFO Deon Fredericks said. The National Treasury is working to facilitate the payment, with the process “well under way,” he said. “The problem with turning SAA around is that the board has to continuously focus on the funding issues rather than getting on with the operational plan,” said Fredericks. If the ZAR5b payment is made, SAA will then have to find ZAR9.2b of short-term loans due by the end of March. “The banks are not as friendly as they used to be,” Public Enterprises minister Pravin Gordhan said. <br/>
