Group Five tells shareholders to be patient
CAPE TOWN - Group Five’s business rescue practitioners said yesterday that at this stage it was very unlikely that shareholders would receive any value back on their investments.
In an update on its business rescue, Group 5 said a shareholder update meeting had been held yesterday. Further post-commencement finance funding from a lender consortium had been secured, and the business rescue process remained on track.
Further agreements had been entered into for the disposal of the African SMEIP business and shares in subsidiary companies; the Northpoint property development; various properties not being utilised; and plant and assets.
The disposals were expected to realise R1billion, which was expected to be used to reduce debt and to settle working capital requirements, the business rescue practitioners said in a statement.