ABU DHABI, United Arab Emirates, Oct. 23, 2019 (GLOBE NEWSWIRE) -- CRO Advisors Issues the Independent Chief Restructuring Officer (ICRO) Eskom Restructuring Report; Finds Liabilities, Unavoidable Expenses and Stranded Cost are 1.7 Trillion Rand ($113BN USD).
CRO Advisors fully supports Tito Mboweni, Minister of Finance's statement to Members of South Africa Parliament on October 22, 2019:
“One of the key issues that we need to solve is by appointing the correct people to run Eskom. That’s what we need to do. We must appoint the correct board of directors; we must appoint a competent management team and we must then be in a position to hold the board of directors and the management team accountable for the operations of Eskom.”
- The CRO Advisors report concludes South Africa Sovereign Credit Rating equates to no better than a “B1” highly speculative, non-investment grade utilizing Moody’s rating scale, based upon Eskom exposure and Treasury of South Africa implications
- The CRO Advisors report concludes that Eskom is “not ready” to be decoupled or broken up into separate operating companies at this time due to the severe financial and operational challenges and malfeasance facing the Company.
- The CRO Advisors report concludes that Eskom must be “ringfenced”, triaged, and brought under the control of a new Senior Energy CRO and a new executive management team, prior to any meaningful discussion or planned decoupling of the Eskom assets.
The full public version of the Eskom ICRO Report 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.