South Africa

Eskom lenders hire PwC

Lenders to Eskom have hired financial advisers as South Africa’s state-owned power utility restructures its business.

The banks asked consultants at PricewaterhouseCoopers to assist them with negotiations, said people familiar with the matter, who aren’t authorized to talk about it and asked not to be identified.

Representatives for Eskom and PwC didn’t immediately respond to requests for comment.

Bondholders appointed advisers Moelis & Co. and law firm Akin, Gump, Strauss, Hauer & Feld earlier this year. Eskom is working with its own adviser Lazard Ltd to split its transmission, generation and distribution units to help manage its debt and improve performance.

In order to implement the unbundling of the transmission units, Eskom needs the consent from some of its lenders, according to a presentation to investors in June. The company issued a formal request of consent to all necessary creditors earlier this year.

The latest appointment comes as the utility and government face mounting criticism for South Africa’s worst-ever blackouts. Eskom’s plants, responsible for supplying more than 90% of the country’s electricity, keep breaking down. The company recently revamped its board to tackle the crisis.


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