S. Africa's Group Five to shed assets under business review
JOHANNESBURG, April 12 (Reuters) - South African builder
Group Five said on Friday it would dispose of some
assets and delay its interim results after filing for bankruptcy
protection last month.
The group, one of the biggest names in South Africa's
construction industry, said the disposals would help it meet its
debt obligations, cover working capital and cut its liabilities.
In a stock exchange statement, it said its business review
had delayed the release of its interim results, which had been
due at the end of March.
"The business rescue practitioners believe that the
disposals to be undertaken will be in the best interests of the
company and shareholders as, if not completed, the company will
be unable to meet its financial commitments," the company said
in the statement.
Group Five, which employs over 8,000 people, said it will
sell the assets to a number of "potential arm's length
purchasers", excluding related parties as defined by the
Johannesburg Stock Exchange.
It filed for business rescue, similar to Chapter 11
bankruptcy protection proceedings in the United States, in March
after its lenders pulled the plug following months of financial
problems, threatening the collapse of a company that traces its
roots back to the 1970s.
On Friday, it said its liabilities currently outweigh its
assets and it was addressing the imbalance with measures
including a creditors' moratorium and through talks with
It added that it would provide monthly updates to investors
on key asset sales and about other aspects of the rescue
Trading of the company's shares was suspended in March.
(Reporting by Emma Rumney
Editing by Susan Fenton and Mike Harrison)
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