EXCLUSIVE: Eskom is ‘not a going concern’
The key challenge for the power utility is refinancing its maturing debt
Eskom is struggling to finalise its interim financial statements for the six months to September because of concern about its ability to refinance maturing debt — which has placed question marks over its status as a going concern. The company is expected to go to the international market later in January with a $1bn bond issue, which if successful will provide some comfort to lenders to roll over existing debt. However, it is in a catch-22 situation as it may need to finalise its interim financial statements before it can go to the market. On Monday, Eskom said that it "remained committed to releasing these results on or before 31 January". This was after the JSE had warned it would suspend trade in its listed bonds if it did not provide the market with the necessary information by the end of January. Apart from an interview earlier in January in which Eskom spokesman Khulu Phasiwe described Eskom’s liquidity situation as "dire", the company has said very little about its financial ...
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