Consolidated Infrastructure Group puts largest subsidiary into business rescue

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Consolidated Power Projects has struggled with a lack of contracts, and becomes the latest JSE construction firm to pursue business rescue

Listed infrastructure company Consolidated Infrastructure Group has put its largest subsidiary into business rescue, becoming the latest casualty of a construction sector beset by weak economic conditions and erratic government spending on infrastructure.

CIG reported in 2019 that the subsidiary was facing costs related to overheads for projects that it failed to secure. The subsidiary had reported a loss of R878.8m to end-August 2019, more than 10 times CIG’s market capitalisation on Tuesday morning, which was R80m. standstill for two months, followed by a slow restart. The group has been seeking concessions from lenders for the subsidiary, but said on Tuesday that these have been unsuccessful.

 

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