South African Airways administrators call Friday creditor meeting

The administrators took control of SAA in December after almost a decade of financial losses and published a rescue plan in June following repeated delays and wrangling over its future. That plan, which envisages scaling back SAA's fleet and cutting jobs, needs at least 10 billion rand ($612 million) in new funds to work. The government has committed to mobilise the funding but has not said where it will come from.

Administrators at state-owned South African Airways (SAA) have called a creditor meeting for Friday as funding for the airline's restructuring has not been received as anticipated, the administrators said on Thursday.

The creditor meeting will be convened at 11:00 local time (0900 GMT) to discuss the funding issue and the proposed future of the company, the administrators said. The administrators took control of SAA in December after almost a decade of financial losses and published a rescue plan in June following repeated delays and wrangling over its future.

That plan, which envisages scaling back SAA's fleet and cutting jobs, needs at least 10 billion rands ($612 million) in new funds to work. The government has committed to mobilize the funding but has not said where it will come from. It said last week that a decision on funding would be announced soon.