Moneyweb reports that the rescue of listed group Basil Read’s construction business has run into “significant challenges”, including the withdrawal of R40 million in post-commencement financing, lower than expected revenue, and slow progress in the sale of non-core assets.  

These challenges, together with others, might result in changes to the business rescue plan.  This was the message from the business practitioners (BRPs) in a third progress report in December.  Basil Read applied for voluntary business rescue for its construction business in June last year.  In August, creditors approved a business rescue plan.  The BRPs indicated that they have significantly reduced the company’s staff complement, which stood at 4,730 when it went into business rescue.  They did not quote numbers, other than to say that the headcount at Basil Read’s head office had been reduced from 98 to 17 and that all labour on onerous and cancelled contracts had been retrenched.  The BRPs stated that, while they still believed there was a reasonable prospect of rescuing the business, they might have to amend the business rescue plan.

• Read Antoinette Slabbert’s report in the above regard in full at Moneyweb

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