Summary
South African Airways (SAA) was set to enter a business rescue process Thursday, with a 4 billion rand ($272 million) lifeline from government and banks announced by a minister.
Pravin Gordhan, minister of public enterprises, said in a statement Thursday that business rescue was the best way to restructure SAA into a stronger entity.
SAA's government-guaranteed debt would not be affected by the business rescue process, Gordhan said, but analysts expect other creditors to suffer losses.
Hans Klopper of BDO Business Restructuring said the rescue process for SAA could be fraught with difficulty and that it could take months if not years to find a solution to the airline's problems.
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