The commitment was given in a letter the ministers sent to the airline’s business rescue team.
It follows the adoption on Tuesday by the company’s creditors of the plan. They voted in favour of it by an 86% margin.
The department confirmed that the rescue plan calls for an amount of R10.1 billion to ”
fund the rescue plan, clean up and stabilise the balance sheet of SAA, restructure the
rest of the group entities that are not in business rescue, provide working capital for
the rest of the group’s entities and to create a stable and viable platform for a new
restructured national airline”.
It said varying tranches of money will be required as different
aspects of the restructuring takes place.
The plan envisions the retrenchment of 2 700 employees at a cost of R2.2 billion.
The state is also committed to honour R16.4 billion in guaranteed debt to the loss-making carrier’s creditors.
Gordhan has been an enthusiastic proponent of rescuing rather than shuttering SAA, while Mboweni has repeatedly said he would prefer to close it down.
However, Cabinet gave its backing to efforts to save the airline.
African News Agency (ANA)