CRO Advisors Assessment of Eskom 1.7 Trillion Rand Liabilities (Insolvent)
South Africa is facing a Catastrophic collapse of Electricity Utility Eskom and the domestic Energy Sector, industrial output and the overall economy.
South Africa will never recover until ALL Citizens reject the corrupt government and criminal cartels”
— KW Miller, Chairman CRO Advisors
ABU DHABI, ABU DHABI, UNITED ARAB EMIRATES, October 31, 2022 /EINPresswire.com/ — CRO Advisors declares a ‘State of Emergency’ in South Africa energy sector. South Africa is facing a Catastrophic collapse of Electricity Utility Eskom and the domestic Energy Sector, industrial output and the overall economy. Stage 8 Load-Shedding or worse and the potential collapse of the transmission grid seems unavoidable.
Eskom has devolved into an operationally dysfunctional, financially insolvent, unreliable and corrupt entity. Eskom’s base-load generation fleet, transmission & distributions systems are ‘critically damaged’ and being run into the ground.
Eskom’s ~500BN (Rand) on balance sheet debt, ~128BN off balance sheet debt, and 1,072BN in unavoidable capital requirements over the next 5 years, represents a staggering 76% of South Africa’s total debt.
Eskom Management and Operations staff is not competent to manage the pending electricity catastrophe. Eskom must be immediately “Ringfenced”, triaged, and brought under the control of a new “hands on” Senior Energy CRO and a new independent senior energy executive management team.
Eskom Operations & Maintenance contracts are wrought with fraud, incompetence and outright theft of critical equipment. Eskom Coal and Diesel Fuel Contracts and procurement is wrought with fraud, kickbacks and outright theft. Substandard coal has been fed into the Eskom coal fleet for years ‘virtually’ destroying the coal plant boilers and other equipment;
CRO Advisors concludes that the South Africa Treasury does ‘not have’ the credit capacity or ability to borrow the required capital to fund Eskom’s significant day to day operational expenditures, rebuild and maintain the Company’s Generation, Transmission & Distribution assets, nor pay for the significant off-balance sheet liabilities.
CRO Advisors sees very little to no asset recovery value in Eskom Debt securities / contractual obligations under any scenario and most are in technical default in one form or another. South Africa Government guarantees are subject to cross default provisions on Sovereign Debt.
CRO Advisors concludes that a full independent” Forensic Audit” of Eskom must be conducted immediately for the benefit of all creditors, vendors, Unions and other stakeholders, including detailed creation of detailed Audit Trails.
About CRO Advisors:
CRO Advisors works privately 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.
A. Malouf
CRO Advisors
email us here
Visit us on social media:
LinkedIn
THE BRUTAL TRUTH ABOUT ESKOM & SOUTH AFRICA
You just read:
News Provided By
October 31, 2022, 15:15 GMT
EIN Presswire’s priority is source transparency. We do not allow opaque clients, and our editors try to be careful about weeding out false and misleading content. As a user, if you see something we have missed, please do bring it to our attention. Your help is welcome. EIN Presswire, Everyone’s Internet News Presswire™, tries to define some of the boundaries that are reasonable in today’s world. Please see our Editorial Guidelines for more information.