Group Five placed in business rescue, listing of shares suspended

Diversified construction Group Five said on Tuesday it had resolved to place its companies into business rescue and had applied to the Johannesburg Stock Exchange to suspend trading in its shares immediately over cash flow troubles.

“Group Five, its wholly-owned subsidiary, Group Five Construction Proprietary Limited and a number of other direct and indirect subsidiaries have for some time been experiencing cash flow difficulties,” it said, adding these emanated from, among others, significant operating losses and negative cash flows in G5 Construction and its direct and indirect subsidiaries.

The financial constraints were exacerbated by the calling of guarantees in issue of US$62.7 million last November and $43.8 million in December relating to the Kpone Gas and Oil-Fired Combined Cycle EPC power plant contract which the client terminated. “G5 Construction Group is currently conducting retrenchment proceedings and it is estimated that a significant amount of severance pay will become payable to retrenched employees pursuant thereto,” it said.

España Últimas Noticias, España Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

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..
Fuente: BDliveSA - 🏆 12. / 63 Leer más »

JUST IN: Group Five placed in business rescue | IOL Business ReportThe group and its subsidiaries have said to have been experiencing cash flow difficulties due to significant operating losses. busrep interesting move
Fuente: IOL - 🏆 46. / 51 Leer más »

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.
Fuente: TimesLIVE - 🏆 28. / 59 Leer más »

Socially conscious' manufacturer lands major contract with the Shoprite Group | IOL Business ReportVerigreen, has been awarded a multi-million rand contract to supply 25 different products under the Shoprite Group’s Ritebrand and Housebrand labels.
Fuente: IOL - 🏆 46. / 51 Leer más »