Transaction Capital auditors warn of 'material uncertainty' in R5bn SA Taxi debt restructure

Transaction Capital says it remains committed to the ongoing viability of its beleaguered SA Taxi business despite its auditors warning of a "material uncertainty" for ongoing talks to restructure a part of the minibus taxi financier's enormous debt load.

While SA Taxi, which is almost 75% owned by Transaction Capital, owes its funders about R16.7 billion in outstanding debt, only about R5.2 billion of that is subject to ongoing discussions with 17 funders, including banks, asset managers and development finance institutions.

Should these talks fail to achieve a viable new agreement by March 2024, it could see SA Taxi having to cease lending money to minibus taxi operators altogether, potentially spelling the end of the company.