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South African Airways has been offered R.3.5 billion (US$239 million) from the state-owned Development Bank of Southern Africa in order to avoid financial collapse.

The business-rescue team will immediately draw down two billion rand from the facility, the company said in a statement earlier.

The carrier has already cancelled some flights this month to save cash after the government missed a deadline to provide the money as part of the terms of its bankruptcy protection.

South African Airways has been loss-making since 2011 and has survived on government bailouts and state-backed guarantees on external loans.

Its business-rescue experts have until the end of next month to provide a turnaround plan, but the South African treasury has been reluctant to commit further state funds as part of that strategy.

Options for funding needed for a restructuring after the plan is adopted are under consideration, according to the business rescue team.

Finding an equity partner and preserving jobs remain key priorities, it said.

Source: breakingtravelnews.com