Tag: financially distressed

In the world of modern business, it is natural that some organisations reach a point where they are forced to make hard decisions in order to keep the lights on. Whether it is due to debt, mismanagement, fraud, malpractice, or simply a failure to adapt to changing market trends, sometimes a business faces a crisis from which it cannot come back - at least, not without a little help. That is where corporate restructuring comes in.

State owned enterprise ESKOM is insolvent and illiquid such that its ability to meet operational costs and long-term debt obligations appears unlikely. The Institute for Accountability in Southern Africa (Accountability Now) is questioning how ESKOM is to continue to trade in the present circumstances which would, in Accountability Now’s opinion, be contrary to section 22 of the Act on any reasonable interpretation.