By Linda van Tilburg
- There is a reasonable chance that South African Airways can be saved from collapse. That is according to Les Matuson, the business rescue practitioner appointed to assess the prospects of SAA and 10 000 jobs linked to it. He and his team said in a statement that they considered a rescue as the best option for SAA despite the inevitable risks and challenges. A business rescue process would achieve a better outcome for all stakeholders than an immediate liquidation. They said most of SAA’s aircraft are leased and accordingly in a liquidation there will be limited assets which can be realized for distribution to creditors. Madison has until the end of February 2020 to reveal their business rescue plan.
- Almost 50% of companies in South Africa had no taxable income in 2017 while a quarter recorded a taxable loss. That’s according to the South African Revenue Service. Based on its latest 2017 and 2018 data the taxman said the decline can be largely attributed to sluggish economic growth and structural challenges in some sectors of the economy, low confidence levels and political uncertainty. These factors subdued investment and resulted in lower profitability for companies. SARS said companies submitting returns had fallen 36.9% to just over two million for the 2018/ 2019 fiscal year partly due to many being considered inactive or dormant. Tax collection for the year ended March was R15 trillion short of the target.
- Tesla is the best performing auto company of the decade, that’s according to Bloomberg. This is despite its ups and downs Wall Street analysts’ pessimism and the fact that co-founder Elon Musk may be the most ridiculed and penalized chief executive officer since the US Securities and Exchange Commission made him pay a $20 million dollar fine for misleading tweets last year. The Tesla Model 3 now outsells every vehicle from Germany or Japan in the US luxury entry category and Musk said last month that his company had received more than 200 000 pre-orders three days after unveiling the cyber truck. Such assurance is the constant element driving Tesla to a record $413 a share this month, or a $73 billion valuation that is greater than all but Toyota ($230 billion) and Volkswagen ($98 billion) among 38 automakers across the globe. Tesla is worth 37% more than General Motors and is almost twice the value of Ford Motor Co.
- A gold jet studded with gems, a bottle of vodka that cost £1 million or a fossilized T-Rex skeleton named ‘Roosevelt’ are some of the unusual gifts for the millionaire or should I say billionaire who has everything and all are available on borrowed cash. There’s a business called MillionPlus.com headed by Chief Executive Paul Welch that caters to the shopping whims of the wealthy and lends money to the rich for that Bugatti or yacht for Christmas. The site recently sold a £900 000 dollar Cartier bracelet to someone. You would think that the super wealthy does not need loans, but Welch says wealthy people will always borrow money. The Bank of American Corporation’s Wealth Management Business had $170 billion of loans outstanding at the end of the third quarter, 5% more than a year earlier. The people who can afford these kind of purchases, those worth at least $50 million or more has reached 168 000 according to Credit Suisse and they are increasingly hungry for credit.
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