Hi all, I've been doing some reading and it appears Eskom is in...

Hi all,

I've been doing some reading and it appears Eskom is in severe financial crisis. Recent reports in the press show that they have R300bn cashflow shortfall (approx $30bn) and are potentially threatening the credit rating of the entire south african economy.....

http://www.iol.co.za/business/news/eskom-saa-funding-gaps-pressure-sa-1.1733839#.U-v6DGOAouc
http://www.moneyweb.co.za/moneyweb-south-africa/sa-considers-private-capital-for-eskom-power-suppl
http://www.bdlive.co.za/business/in...-government-cash-to-plug-its-dire-funding-gap

Sadly this is not good for Sunbird and it's shareholders. We have bet the farm on doing a deal with these guys and by the sound of things Eskom will be in no shape to do a deal, this has always been my concern about only having one potential partner.

SNY now had little cash as per the last quarterly $373k, with substantial expenses. How do we raise money with all this going on? how are these debt holders going to react? I can't see any of them converting to equity if our future is bleak..... and I can't see them being too happy if they are left with security over an asset which could have no future..

This is turning into a blood bath....and I'm supprised the company have not made announcements about what is going on with Eskom!

Very concerning
Tradergirl....