March 20, 2020 / 3:20 PM / in 9 days

BRIEF-Tsogo Sun Hotels Expects To Meet Covenant Obligations To Debt Providers For 12 Months Ended March 2020

March 20 (Reuters) - Tsogo Sun Hotels Ltd:

* ALREADY IMPLEMENTED ACTIONS IN ORDER TO REDUCE COSTS AND CAPITAL EXPENDITURE

* ORDERLY DEACTIVATION OF A NUMBER OF HOTELS IN KEY NODES WHERE GROUP HAS MULTIPLE PROPERTIES

* THIS FINANCIAL YEAR HAS BEEN A DIFFICULT PERIOD WITH SUBDUED DEMAND ON BACK OF POOR ECONOMIC GROWTH

* A REDUCTION OF EXCESS CAPACITY IS REQUIRED

* GROUP WILL ASSESS DEMAND ON AN ONGOING BASIS WHILE ENSURING OPERATING COST OF THESE HOTELS ARE REDUCED TO A MINIMUM

* STILL EXPECTS TO MEET COVENANT OBLIGATIONS TO ITS VARIOUS DEBT PROVIDERS FOR 12-MONTH PERIOD ENDED 31 MARCH 2020.

* ALL CAPITAL EXPENDITURE HAS BEEN POSTPONED AND ONLY ESSENTIAL MAINTENANCE WILL ENDURE

* IT WOULD BE UNLIKELY THAT GROUP WILL MEET COVENANT REQUIREMENTS FOR ROLLING 12-MONTH PERIOD ENDING 30 SEPTEMBER 2020

* STILL EXPECTS TO MEET COVENANT OBLIGATIONS TO ITS VARIOUS DEBT PROVIDERS FOR 12-MONTH PERIOD ENDED 31 MARCH 2020 Source text for Eikon: Further company coverage:

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