Basil Read completes OR terminates 20 contracts
JOHANNESBURG - More than 20 contracts undertaken by Basil Read, the construction group in business rescue, have been completed or terminated, the business rescue practitioners said on Friday.
Three contracts were being completed, five were being descoped or ceded to other contractors, while three had been handed to clients and defects remediation processes were under way. Performance guarantees had been reduced to about R744million from R1.1billion. “Negotiations with various employers are ongoing to ensure that no further calls on guarantees are made.
This significantly reduces the contingent liability risk on the business,” the business rescue practitioners said. A number of contractual claims worth more than R200m were being pursued. To date, claims of R34m and the proceeds had gone towards the repayment of finance raised for the business rescue process.
With the exception of the employees required to assist with the completion of the contracts (including the various Medupi contracts), and the remaining staff at head office, all other employees had been retrenched.
Plant and equipment continued to be sold via auctions. The proceeds would be used to repay finance advanced, retrenchment costs and other business rescue related costs, the business rescue practitioners said. New premises had been found, the Basil Read Campus would be vacated to reduce the costs for the company and its continuing business.
An independent sales adviser had been appointed to value the business and to adjudicate on any potential offers received.