Group Five enters bankruptcy protection; listing suspended on JSE

Group Five [JSE:GRF] entered a form of bankruptcy protection known as business rescue and had its stock suspended from trading on the JSE as the construction company sees a “slim chance” for any value realisation for shareholders.

The company appointed David Lake and Peter van den Steen of Metis Corporate Advisory as business rescue practitioners for each of Group Five and G5 Construction, it said in a statement Tuesday.

The stock was suspended at 89 cents per share. G5 Construction is cutting jobs, but there will be a “significant” amount of severance pay due.

Other South African construction companies to have been forced into business rescue in the past year include Basil Read Holdings, a unit of Esor Ltd. and the Liviero Group. With the South African economy and state spending on infrastructure having slowed, construction firms are battling to fund long-term projects.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
15.86
+1.4%
Rand - Pound
19.79
+0.3%
Rand - Euro
16.79
+0.3%
Rand - Aus dollar
11.18
+0.0%
Rand - Yen
0.12
+1.0%
Gold
1,841.55
+1.4%
Silver
21.92
+2.4%
Palladium
2,008.00
-0.4%
Platinum
966.50
+3.0%
Brent Crude
109.11
-2.6%
Top 40
61,726
-1.3%
All Share
68,246
-1.2%
Resource 10
71,337
-0.6%
Industrial 25
75,802
-1.3%
Financial 15
15,729
-1.9%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot