South African Airways Administrators, State in Guarantee Impasse

The administrators of South African Airways, the state-owned airline that’s in bankruptcy protection, want the government to set aside 16.4 billion rand ($998 million) that it’s guaranteed to pay creditors, Bloomberg News reported. The Treasury says the current structure of its guarantees should suffice. The administrators want an agreement for the money to be paid into an escrow account -- the last outstanding issue that needs to be resolved before the carrier’s business-rescue process can be finalized -- to be signed on Monday, said the person, who spoke on condition of anonymity because the discussions aren’t public. “The government guarantee provide the necessary legal comfort that should SAA not be in a position to settle maturing debt, then government will settle this debt,” the Treasury said in a response to queries. Read more