Cash-strapped power utility Eskom is considering asking for extensions on some debt and staff layoffs as it grapples with its finances after years of burning through funds, according to people familiar with the matter. Eskom, which depends on government support to service its R368bn of debt, is evaluating a so-called liability management exercise as it seeks to implement a turnaround plan, said the people, who asked not to be identified. Management have discussed seeking to recover unpaid bills and increase tariffs to boost revenues by about 50% in four years and lay off about 15,000 workers, they said. Eskom representatives declined to comment on the debt extension proposal and said any layoffs would need support from all stakeholders. Eskom is in the process of appointing financial advisers to "assist the company with possible balance sheet optimisation solutions," the utility said. Eskom has been at the centre of scandals involving the awarding of contracts to firms linked to the...
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