has said it is conducting retrenchment proceedings and has estimated it will need to pay out R233m in severance pay as it enters business rescue. The construction and engineering group also confirmed on Thursday in a note to shareholders that it has received confirmation from the Companies and Intellectual Property Commission of the registration of the resolutions placing it and G5 Construction into business rescue.
Group Five Construction, is a wholly owned subsidiary of Group Five, is facing a cash shortfall of R2.39bn. It said in an update to shareholders that the CIPC had confirmed the interim appointment of David Lake and Peter van den Steen of Metis Corporate Advisory as business rescue practitioners.The boards of the two companies passed a resolution on Monday, March 11, in Sandton, laying out the financial position of the two companies.
It said that G5 Construction was"financially distressed and it is reasonably unlikely that G5 Construction will be able to pay all of its debts". G5 Construction experienced negative cash flows of R880m in 2018, said the board, and would need R3.6bn to fund its working capital requirements up to December 2019.
It said the construction company was not able to itself generate such working capital or raise it from other Group 5 companies or third parties.
Fin24 Business Rescue == Tax payers have to pay for it
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La source: dailymaverick - 🏆 3. / 84 Lire la suite »
BREAKING NEWS: Struggling Group Five files for business rescueGroup Five and peers including Basil Read and Erbacon have succumbed to a depressed construction market in which major projects have failed to materialise Group5 go speak to Edgars..
La source: BDliveSA - 🏆 12. / 63 Lire la suite »
Struggling Group Five files for business rescueGroup Five says it has filed for business rescue — a process aimed at rehabilitating financially distressed companies — because lenders have not been willing to give it more funding.
La source: TimesLIVE - 🏆 28. / 59 Lire la suite »
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Group Five placed in business rescue, listing of shares suspendedThe construction group is currently conducting retrenchment proceedings.
La source: TheCitizen_News - 🏆 6. / 75 Lire la suite »
SA’s construction industry, like Group Five, may be collapsingAs construction companies crumble, SA will have to rely on foreign companies — and their prices — for infrastructure builds
La source: BDliveSA - 🏆 12. / 63 Lire la suite »
Dti partners with World Bank Group to drive private sector competitiveness and investmentCommitment to the national reform programme is articulated at the highest level within government structures, says dti.
La source: TheCitizen_News - 🏆 6. / 75 Lire la suite »