South African Airways (SAA) has announced that it is currently renegotiating the terms of its loan repayments with its lenders to ensure that it remains operational and in business.
Acting CEO for the national carrier, Musa Zwane, stated that the move to renegotiate the management of its loans was not out of the ordinary and usually occurred when loans became due and payable.
He noted that R9 billion would be due and payable to lenders by June 30, but added that the company was positive that it would meet its loan obligations as only one lender had expressed a desire to have its loan paid back.
“The renegotiation of the terms of the loans is ongoing and SAA is optimistic that the airline will continue to operate and honour its obligations to its customers, suppliers and partners,” said Zwane.
SAA spokesperson Tlali Tlali pointed out that a five-year plan was currently being put together to address the financial challenges facing the company – such as a weak balance sheet and the airline’s heavy reliance on government guarantees.
