That R9.2 billion is government-guaranteed debt, meaning that the state has no choice but to pay it if SAA cannot. See my post earlier in this thread.HJK 414 wrote: ↑Fri Dec 06, 2019 11:03 amIt also notes that the Government is now pouring hard cash into SAA ……
It is worth noting that government pencilled in a commitment during the Medium Term Budget Policy process in October 2019 to repay SAA’s existing R9.2-billion in debt, and provide it with R2-billion in operating capital
That is 11.2 Billion Rand of taxpayers funds / cash - going into the airline
The alternative is that the debt is defaulted on, triggering a cross default on other government debt. That'll cost taxpayers much, much more than R11.2 billion.
None that I can see, but then I don't know of any BRPs with airline experience in SA. They'll likely bring on outside expertise as part of the process.
The MTBS planned to repay it over three years, to cushion the blow a little. I wonder if the BRP now means that must be accelerated. Lots of interesting new questions and edge cases when an SOE with state-guaranteed debt goes into business rescue.