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EsorBusiness Report writes that listed civil engineering and construction group Esor has commenced a process to retrench about 33% in the wake of serious financial and liquidity problems.  

CE Wessel van Zyl said on Friday that the group had made provision in its cash-flow forecast for retrenchment costs of about R10m, with the reduced headcount cutting costs by about R4m a month and R13.6m in retrenchment costs incurred in the year.  Esor retrenched 439 employees in the six months to August last year.  It employed an average of 2,533 people in its 2017 financial year.  Van Zyl observed that the Esor board's view was that the company was not and would not become financially distressed.  This was informed by proactive steps that had been taken or matters concluded to avoid becoming financially distressed and ensure creditors remained satisfied.  Van Zyl added that Esor’s board believed sufficient steps had been taken to alleviate the group’s immediate cash-flow problems.  Esor is one of a number of listed construction companies experiencing financial and liquidity problems.

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