ABU DHABI, United Arab Emirates, Nov. 18, 2019 (GLOBE NEWSWIRE) -- The Global Capital Markets are closing the door on the South African Government. The Current Government simply refuses to listen and do what they have been told “they must do" by the Global Capital Markets, to stop the country from completely failing, starting with Eskom.
Hiring another ill-fated CEO of a massively insolvent, operationally broken and corrupt company like Eskom is not the way forward for South Africa.
Eskom must undergo an independent detailed and comprehensive “Forensic Audit” on behalf of all creditors, vendors and stakeholders.
- Eskom must be “Ringfenced”, triaged, and brought under the control of a new “hands on” Senior Energy CRO (not another CEO) and a new senior energy executive management team, prior to any meaningful discussion or planned decoupling of the Eskom assets;
- Eskom is “not ready” to be decoupled or broken up into separate operating companies at this time due to the severe financial, operational challenges, corruption, fraud and malfeasance facing the Company;
Eskom’s ~500BN on balance sheet debt, ~128BN off balance sheet debt, and 1,072BN in unavoidable cost over next 5 years, represents a staggering 76% of South Africa’s total current debt.
SA total debt obligations are ~5.3 Trillion Rand (353BN USD), including Eskom’s liabilities and capital requirements, excluding other substantial cash requirements for other failing State-Owned Companies, excluding sizable Tax collection gaps and other sizable growing fiscal gaps.
The full public version of the Eskom ICRO Report issued on October 17, 2019 may be found at:
https://www.dropbox.com/s/9cwnnhchwepraqk/Eskom%20Independent%20CRO%20Advisor%20Report%2010.17.19.pdf?dl=0
About CRO Advisors:
CRO Advisors work with Sovereign Governments, Institutional Investors and other stakeholders with exposure to the Global Energy & Infrastructure sector. The Firm engages with Sovereign Wealth Funds, Private Equity and Specialized Lending Funds to mobilize large pools of capital for our clients as part of our restructuring and turnaround mandates. CRO Advisors are specialists in the most complex restructuring and recapitalization of distressed Sovereign Government Assets, and Infrastructure companies and assets globally. Bankruptcy, Debtor in Possession (DIP) Finance, Business Rescue and Turnaround. Focus is on very large and complex debt and operational restructuring's in the Energy & Infrastructure sectors, including Power Generation, Transmission, Distribution, Natural Gas Pipeline, Fuel Storage Terminals, and other critical infrastructure assets.