Administrators for South Africa\u2019s loss-making state airline have been given an extra month to complete a turnaround plan.<\/p>\n
The so-called Business Rescue Practitioners can now file their report on South African Airways by the end of March, they said in a statement on Friday. A majority of creditors agreed to the extension. Bloomberg News earlier reported the development.<\/p>\n
South Africa\u2019s government placed SAA into a local form of bankruptcy protection late last year, a move designed to end a cycle of state bailouts and mounting losses.<\/p>\n
The National Treasury increased the amount of funding available to the carrier to 16.4 billion rand ($1 billion) earlier this week to help service debt while the administrators complete their task.<\/p>\n
The extension is to allow committees representing SAA employees and creditors to give feedback on a draft version of the plan, while the Department of Public Enterprises will also be given an opportunity to comment, the administrators said.<\/p>\n
A final version will then be published and voted on by lenders.<\/p>\n
\u201cWe believe that a further extension of one month will allow for sufficient time for us to finalise the draft plan, given the complexity and extent of engagement that is required in a business of this size,\u201d the rescue practitioners said.<\/p>\n
To date, the rescue team led by Johannesburg-based Matuson & Associates have cut several international and domestic routes while serving notice to labor groups that job cuts may be inevitable.<\/p>\n
Finance Minister Tito Mboweni on Wednesday reiterated that the government\u2019s aim is to turn SAA into \u201ca sustainable airline that is not a burden to the fiscus,\u201d rather than close it down.<\/p>\n