Investors rattled by the claims of graft at Eskom
Utility meets with New York bondholders, Citibank involvement points to possibility of impaired debt covenants
The concern of lenders has emerged as the major reason why Eskom had to hastily cancel its results event this week.
Some local and overseas-based investors met Eskom executives on Monday and Tuesday to express their concern about the allegations of fraud and corruption involving some of its top executives.
A few weeks ago the utility also met some of its bondholders in New York, but details of the discussions remain confidential. The bondholders are said to be concerned the utility may have breached some of its debt covenants as it has been plagued by scandals in a depressed economy.
Eskom, however, said the meetings were "routine."
But this is disputed by sources with knowledge of the matter, who said the allegations plaguing the utility had unsettled some investors.
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