Group Five asset disposal proceeds static at R1.2bn
JOHANNESBURG - Group Five said on Wednesday it had not made any material disposals of plant and assets in the current month, with cumulative proceeds from disposals since the commencement of business rescue proceedings remaining fairly static at R1.2 billion.
The embattled construction engineering company resolved in March to place its companies under business rescue and applied to the Johannesburg Stock Exchange to suspend trading in its shares after several direct and indirect subsidiaries experienced cash flow difficulties.
Following the start of business rescue proceedings, Group Five saw a board exodus, with four directors including board chairman Nonyameko Mandindi resigning with immediate effect.
Group Five says it will use the proceeds of the sales to reduce secured debt, with the balance being applied to working capital requirements.
Several of the disposals are subject to final agreements or conditions.
The company said business rescue practitioners continued to receive support from a lender consortium by way of post commencement funding, including on ongoing projects.
The business rescue practitioners will publish a rescue plan on August 30.
- African News Agency (ANA)