Airlink will vote against the implementation of the proposed SAA business rescue plan at tomorrow’s (June 25) virtual creditors’ meeting.
In a statement, Airlink said that while it respected the South Gauteng High Court’s decision to allow tomorrow’s meeting of SAA creditors to proceed, it was disappointed in the ruling.
“We had sought to interdict the meeting and to have the SAA business rescue process stopped on the basis that the proposed rescue plan is implausible, treats creditors unequally, is opaque in explaining how it will be funded and that it is not the product of a truly independent business rescue process,” said Airlink CEO and Managing Director, Rodger Foster.
He pointed out that although government had restated its commitment to SAA, Airlink was left with no alternative but to take legal action, “having been frustrated by the business rescue practitioners and their resistance to comply with the provisions of the Companies Act”.
“Given these factors, we fail to understand how creditors can be expected to make an informed decision when asked to vote on the plan at tomorrow’s meeting. We cannot reconcile that the process to date is what is anticipated in the Companies Act,” said Foster.
He said Airlink’s vote against the implementation of the plan in its current form was based on “the absence of answers to the raft of queries” Airlink had raised.
“We will seek to convince SAA’s business rescue practitioners – Siviwe Dongwana and Les Matuson – to revert to their original mandate as defined in the Companies Act, which requires them to produce a rescue plan in the best interests of all creditors, and not favour certain creditors as well as the shareholder.”
Foster said Airlink also noted recent legal opinions expressed in the media, which raised questions about the fairness and legality of the voting process insofar as:
• Lenders being afforded secured creditor status, when their loans had been guaranteed by government.
• Holders of unflown SAA tickets purchased in the “pre-commencement” (i.e. before December 6, 2019, which was when SAA was placed into business rescue) who have not been recognised as creditors and are therefore unable to vote.
The Department of Public Enterprises (DPE), meanwhile, has welcomed the decision by High Court judge, Leicester Adams, stating that it hoped there would be no further delays to vote on the SAA rescue plan, which could result in “the formation of a viable, sustainable, competitive airline that provides integrated domestic, regional and international flight services”.
DPE spokesperson, Sam Mkokeli, said the department believed a positive vote to finalise the business rescue process would be the “most expeditious option” for the national carrier to restructure its affairs, its business, debts and other liabilities
