FOOTNOTES
HILARY JOFFE: Eskom given breathing room as lenders approve of new board and chief
Talk is that lenders are lining up to lend to Eskom now that a competent and credible new board is in place, along with a well-regarded interim CEO. Eskom had risked default because bankers would not roll over short-term loans — essentially working capital — and declined even to talk to the old board. Now, talks are under way with the banks and immediate funding risk seems on its way to being managed. The next task is to ensure Eskom provides its auditors, SizweGobodoNtsaluba, with the information that they have demanded and with enough comfort to enable them to sign off the interim accounts in time to avoid the JSE suspending the listing of Eskom’s bonds. Talk about the discipline of the market. Interventions by lenders include the Development Bank of Southern Africa and the commercial banks. All of that, however, is crisis management in the very short term. Eskom will be back with the begging bowl in February or in 2019 if the new board doesn’t act decisively to put a management t...
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