SAA insolvent and Moneyweb report -

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SAA insolvent and Moneyweb report -

Unread post by Tony4 » Tue Nov 24, 2015 3:41 pm

Is this really the case or just hype?

I know that they have been under- funded to sustain the gross mismanagement but what now?

Corporate: Lawyer advises SAA to seek business rescue
SAA’s legal head advised its board this month to urgently file for business rescue or, if it sees no realistic prospect of successful business rescue, for liquidation, according to a Moneyweb report. ‘SAA is financially distressed and currently trading under insolvent circumstances and consequently trading recklessly,’ according to a report, prepared by SAA General Manager Legal, Risk and Compliance Ursula Fikelepi. She and former acting CEO Thuli Mpshe signed the report, dated 6 November. Moneyweb notes the report deals with the impact of two letters from Airbus dated 2 and 26 October about outstanding pre-delivery payments for aircraft . According to the report, former CFO Wolf Meyer told the airline’s executive committee (exco) on 20 October that SAA did not have enough cash to make these payments as well as its other payments ‘currently due and payable’. Fikelepi was subsequently asked by the exco to explain SAA’s legal position under the Companies Act in the light of Meyer’s statement. SAA has 30 days to rectify breach of the Airbus contract. If that is not done, Airbus may cancel all or parts of the agreement. If it decides to enforce it rights, and issue a Notice of Default, other funders and lessors may demand accelerated payments or cancel their agreements. ‘All could trigger further financial distress and/or insolvency for SAA,’ according to the report. Fikelepi says if SAA continues incurring debt while there is no reasonable prospect of creditors being paid on time, it is trading recklessly or negligently in terms of the Companies Act.
Full Moneyweb report
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Re: SAA insolvent and Moneyweb report -

Unread post by Bianca Albesco » Tue Nov 24, 2015 5:00 pm

The report.
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Re: SAA insolvent and Moneyweb report -

Unread post by Induna » Tue Nov 24, 2015 5:58 pm

I thought SAA was recovering well after Nico returned to Mango... What happened in the meantime...?

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Re: SAA insolvent and Moneyweb report -

Unread post by thelsa » Tue Nov 24, 2015 7:56 pm

Induna wrote:I thought SAA was recovering well after Nico returned to Mango... What happened in the meantime...?

Jacques
It was after he returned to Mango that the Paw-Paw hit the fan
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Re: SAA insolvent and Moneyweb report -

Unread post by Greg Vos » Tue Nov 24, 2015 8:24 pm

thelsa wrote:
Induna wrote:I thought SAA was recovering well after Nico returned to Mango... What happened in the meantime...?

Jacques
It was after he returned to Mango that the Paw-Paw hit the fan
Since when can BEE go unsupervised? ...... This is the result, nothing new ...it must be very embarrassing for the hand full of previously disinvantaged who are actually qualified :oops:


Maybe they can convince their offspring about the problem in SA?... Because down the line even these few who prosper now will die of hunger with this thing we call transformation :twisted:
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Re: SAA insolvent and Moneyweb report -

Unread post by Mauler » Tue Nov 24, 2015 9:35 pm

These takedown orders are getting popular: http://www.bdlive.co.za/business/transp ... -saa-story
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Re: SAA insolvent and Moneyweb report -

Unread post by farmpilot » Wed Nov 25, 2015 8:44 am

Don't you loose your AOC if you are insolvent?
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Re: SAA insolvent and Moneyweb report -

Unread post by Tic » Wed Nov 25, 2015 8:49 am

thelsa wrote:
Induna wrote:I thought SAA was recovering well after Nico returned to Mango... What happened in the meantime...?

Jacques
It was after he returned to Mango that the Paw-Paw hit the fan
I am no airline expert or financial whizz - but was it triggered by an event? Rand slide? You dont go from so-so to heading down the drain in a couple of days? Do you?
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Re: SAA insolvent and Moneyweb report -

Unread post by eddy » Wed Nov 25, 2015 8:55 am

Tic wrote:
thelsa wrote:
Induna wrote:I thought SAA was recovering well after Nico returned to Mango... What happened in the meantime...?

Jacques
It was after he returned to Mango that the Paw-Paw hit the fan
I am no airline expert or financial whizz - but was it triggered by an event? Rand slide? You dont go from so-so to heading down the drain in a couple of days? Do you?
I don't think that has been as good as so-so for many years; at least not since Coleman Andrews sold off the fleet
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Re: SAA insolvent and Moneyweb report -

Unread post by Volo » Wed Nov 25, 2015 9:27 am

Am I missing something here . SAA have been insolvent for years . After being bailed out to the tune of R24 Billion that they have never paid back, they can hardly be solvent , however surely this is irrelevant as they only have one shareholder who simply cannot wind them up as the Fallout would be simply too much for the government in so many ways .
In the grand scheme of things this money is chicken feed for a government that wants to spend a trillion rand on nuclear power .
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Re: SAA insolvent and Moneyweb report -

Unread post by dilligaf » Wed Nov 25, 2015 11:58 am

farmpilot wrote:Don't you loose your AOC if you are insolvent?
As far as I know, yes you do. But as always, the rules only apply to some....
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Re: SAA insolvent and Moneyweb report -

Unread post by Mr B » Wed Nov 25, 2015 12:04 pm

George Orwell — 'All animals are equal, but some animals are more equal than others
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Re: SAA insolvent and Moneyweb report -

Unread post by AndyF1 » Wed Nov 25, 2015 4:49 pm

.
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Re: SAA insolvent and Moneyweb report -

Unread post by scavanger » Wed Nov 25, 2015 6:08 pm

VERY interesting reading. Thanks Andy. Doesn't sound like SAA will be around for much longer. Expect another Government bailout :evil:
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Re: SAA insolvent and Moneyweb report -

Unread post by The Blacksmith » Wed Nov 25, 2015 7:29 pm

scavanger wrote:VERY interesting reading. Thanks Andy. Doesn't sound like SAA will be around for much longer. Expect another Government bailout :evil:
They will find a way around this at the Tax payers expense. As well as the millions required to train the black pilots. :roll: :roll: :roll:

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