Eskom Asks Government to Take Stake in Company to Ease Debt Payments.

ESKOM Holdings SOC Ltd.; STATE power; DEBT; ELECTRIC utilities; PAYMENT; EQUITY stake

South Africa's state power utility, Eskom Holdings SOC Ltd., has requested that the National Treasury convert 16 billion rand ($840 million) of bailout funds into equity. This request is part of a larger government bailout aimed at improving Eskom's performance and reducing its debt-service burden. The conversion of the loan into equity would allow the government to take a stake in the company and help alleviate the financial strain that has hindered Eskom's ability to carry out necessary maintenance. Eskom is projected to incur a loss of 23.2 billion rand this year. [Extracted from the article]

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