Group Five to fill investors in on business rescue

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Group Five to fill investors in on business rescue

Published Date: 2019-06-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Group Five to fill investors in on business rescue

The construction group's business rescue practitioners will engage with shareholders next week as assets are put up for sale.

Long-suffering shareholders of Group Five will be filled in on progress made in its business rescue process next week.

Business rescue practitioners David Lake and Peter van den Steen of Metis Corporate Advisory will engage with investors of the construction and infrastructure group at a meeting in Johannesburg next Thursday. That follows last month's update, in which it outlined disposals worth R709 million.

The group's shares were suspended on 12 March as it entered business rescue after banks turned down its request for more funding. Business rescue is a form of bankruptcy protection aimed at helping to rehabilitate insolvent companies and providing temporary supervision and management of the business so that it can be nursed back to health, if possible. The aim is to keep businesses functioning to preserve jobs while structuring payment schemes for creditors.

Group Five's financial constraints and those of G5 Construction were exacerbated after Cenpower, its client in Ghana, called in bank guarantees of $62.7 million in November and $43.8 million in December relating to the construction of the Kpone power plant following several delays to the project and the termination of Group Five's contract.

By last month it had entered binding agreements to sell a 40.1% shareholding in Intertoll Capital Partners; a 50% shareholding in Barnes Reinforcing Industries; and a 28.9% stake in Jozi Power. It said property, plants and assets not being used in the ordinary course of business were also being sold.

Shareholders planning to attend the presentation at the Rosebank Union Church in Johannesburg at 1:30 pm on Thursday 20 June should RSVP by email to: G5ltdBR@groupfive.co.za by Tuesday 18 June.





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