South Africa moves to prepare negotiations with creditors over a proposed spin-off of Eskom Holdings SOC Ltd.’s transmission subsidiary. According to the head of National Treasury, the government plans to hire advisers in the coming weeks to begin discussions with lenders on a plan for the restructuring. Eskom has said the process needs careful management because it would significantly change the company’s risk profile and the way credit obligations are assessed.
The proposed approach focuses on separating the transmission business from the rest of Eskom Holdings, with creditor discussions forming part of the broader effort to align the restructuring with lenders’ concerns and financing terms. While the government’s immediate step is to appoint advisers and start talks, both the Treasury and Eskom indicate that managing creditor negotiations and the resulting changes to risk are central to the process.
The articles do not provide further details on the timeline for the spin-off, the specific structure under consideration, or the identities of lenders involved.
