Group Five on Tuesday said it had sold more plant and assets that are not being utilised in the ordinary course of business as the company is disposing of its assets.
The embattled construction engineering company said it has realised R1.2 billion in total proceeds from the sale of assets on a cumulative basis on all disposals since the commencement of business rescue proceedings.
Numerous of these disposals are subject to final agreements or conditions precedent in order to be concluded.
Group Five is to use the proceeds of these sales to reduce the relevant secured debt, with the balance of unsecured proceeds being applied to working capital requirements.
In March, Group Five resolved to place its companies into business rescue and had applied to the Johannesburg Stock Exchange to suspend trading in its shares after several other direct and indirect subsidiaries experienced cash flow difficulties.
Following the business rescue proceedings, Group Five saw a board exodus as four directors, including board chairperson Nonyameko Mandindi, resigned with immediate effect.
Group Five said the business rescue practitioners continue to receive ongoing support from the lender consortium by way of post-commencement funding, ensuring that the business rescue process remains on track.
The group said the business rescue practitioners have received approval from the majority of the creditors to extend the publication date of the Business Rescue Plan to 30 August 2019.
– African News Agency (ANA)