State-owned power firm Eskom has hired financial adviser Lazard to draft a plan to shore up its balance sheet as it struggles to emerge from a financial crisis, two banking sources told Reuters.
Cash-strapped Eskom is critical to Africa's most industrialised economy as it supplies more than 90% of its power and is one of its most indebted state firms.
President Cyril Ramaphosa appointed a new board at Eskom early this year in one of his first interventions since becoming leader of the ruling African National Congress (ANC).
He later secured the backing of senior ANC figures for a radical overhaul of Eskom.
"Eskom hired Lazard to come up with options for the company's turnaround strategy," one of the banking sources said. "This isn't a straightforward debt restructuring."
The second source said Lazard had been hired several weeks ago to look at ways to improve the company's balance sheet but did not elaborate further.
Lazard, whose business includes advising companies on deals and debt restructuring, did not reply to a Reuters request for comment.
An Eskom spokeswoman asked for questions to be submitted by email but did not answer immediately.
Eskom said last month it was considering selling non-core assets and job cuts after swinging to a full-year loss.
The company, which employs around 47 000 people, also said last month it was not planning on restructuring its debt.