CAPE TOWN – Group Five might need to retrench more people than it had anticipated before the group went in the business rescue, the business rescue practitioners said in a statement.
The group, with more than 7000 employees, had estimated at the time of going into business rescue last week, that it would need R230 million to pay for retrenchments.
However, the group did not disclose the number of staff being retrenched at the time.
Group Five and subsidiary Group Five Construction have been placed in business rescue, although all other subsidiaries, including Developments & Investments and Operations & Maintenance, the manufacturing businesses and international subsidiaries, continue to operate as going concerns.
Exxaro’s announcement on Friday that it had terminated an agreement with Group Five Projects to construct a new small coal plant at its Grootegeluk mine in Limpopo means some 750 contract workers would be impacted by the decision.
BUSINESS REPORT ONLINE