No light for struggling Basil Read
PRETORIA – A meeting of Basil Read Construction creditors to consider the business plan proposed for the financially troubled company has been adjourned to the end of this month following a motion proposed by the Industrial Development Corporation (IDC).
Basil Read said yesterday that the rationale for the adjournment was for affected persons to have more time to fully engage and consider the proposals made in the business rescue plan prior to the plan being tabled for consideration and approval by the company's creditors.
The motion said certain of the post-business rescue commencement funders required further time to consider the proposed business rescue plan so they could follow their internal processes and procedures for the purposes of providing “additional post-commencement finance”.
Joint business rescue practitioners Siviwe Dongwana and John Lightfoot from Matuson Associates confirmed their continued belief, despite inevitable risks and challenges, that there remained a reasonable prospect of the company being rescued.
Khathutshelo “K2” Mapasa, the chief executive of Basil Read, confirmed last month that the group had secured R265 million in post-business rescue commencement funding, a crucial element in the successful execution of its business rescue plan. The funds would be used to execute construction contracts.