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.
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MAVERICK BUSINESS: Group Five: Another SA construction giant buckles under the pressureGroup Five, one of SA’s biggest names in construction and the company that built the Moses Mabhida stadium and King Shaka airport in Durban, filed for business rescue on Tuesday 12 March, becoming the latest in a long line of construction companies that have gone under in the past few years. The question now is not so much whether the company sector can be saved, but whether the sector can ever be revived, and if so, how. When companies like group 5 are crumbling, what chance do we have as smaller construction companies? It's tough It is tough out there.
Источник: dailymaverick - 🏆 3. / 84 Прочитайте больше »
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Источник: BDliveSA - 🏆 12. / 63 Прочитайте больше »
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.
Источник: TimesLIVE - 🏆 28. / 59 Прочитайте больше »
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
Источник: IOL - 🏆 46. / 51 Прочитайте больше »
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Источник: TheCitizen_News - 🏆 6. / 75 Прочитайте больше »
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
Источник: BDliveSA - 🏆 12. / 63 Прочитайте больше »
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.
Источник: TheCitizen_News - 🏆 6. / 75 Прочитайте больше »