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BusinessLive reports that a successful rescue of the ailing Group Five construction firm will save up to 3,500 jobs and improve the shortfall to creditors by R5bn.
On Friday, the business rescue practitioners Peter van Steen and Dave Lake released the business rescue plans for Group Five Construction and Group Five Ltd, which are separate legal entities. Voting on the business rescue plans for both entities will take place in consecutive meetings on 11 September. Group Five Construction represents the majority of the businesses, claims and recovery value within the greater group of companies. Group Five, like a number of other major construction firms in SA, has struggled to stay afloat in a depressed local economy. In March it filed for business rescue. In a statement issued on Friday night, Van Steen and Lake said they were pleased to present a solid rescue plan for Group Five Construction: “The losses incurred by creditors will be materially less at approximately R5bn under the proposed rescue plans relative to the alternative scenario of a liquidation of the company. Through the restructuring and sale of businesses we anticipate that between 3,000 and 3,500 jobs will be saved, albeit under new ownership.” The practitioners noted that there had not been, nor would there be, any fire sales of assets.
- Read the full original of the above report by Lisa Steyn at BusinessLive
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