CAPE TOWN - Group Five said yesterday it had provided stakeholders with the first report on the status of the company’s business rescue proceedings and it needed to further extend the date for the publication of a business rescue plan.
Group Five became the latest of the large construction groups to hit financial difficulties when it was placed in business rescue on March 11, 2019.
Dave Lake and Peter van den Steen were appointed as business rescue practitioners on March 13.
They said that since their appointment they had met with the creditors, but no creditors committee was formed. A business rescue plan was meant to be published on April 16 - required within 25 days from the date of the appointment of business rescue practitioners - but an extension from the creditors to June 28 was obtained. However, “in view of the complexity of the matter and the need for us to consult more widely to prepare an appropriately thorough business rescue plan, we are now of the view that the original extension date for the publication of the business rescue plan has proved to be optimistic,” a statement said.
Lake and Van de Steen said they would approach creditors for approval to extend the date for publication in due course.