Construction and engineering company Group Five says that there is "no realistic prospect" that its construction company will recover from the business rescue process, currently underway.
The group on Monday issued an update on the business rescue process for the month of November.
Group Five Limited (G5 Limited) and its operating subsidiary Group Five Construction (G5 Construction), in March entered into business rescue following significant financial losses. It has been issuing status reports on a monthly basis.
In October BDO South Africa was appointed external auditor for both G5 Limited and G5 Construction. The auditing process is still ongoing, the group said. Further to G5 Limited, the sale process of its subsidiary Everite is also ongoing. Both companies are also still facing a number of litigation, arbitration and adjudication matters.
G5 Limited said the separate business rescue process of G5 Construction is also still ongoing. "We would note that there currently remains no realistic prospect of any recovery by the Company from the Group Five business rescue process," the status report read.
Particularly related to G5 Construction, during the month it reached the conclusion of its sales agreement for its Structural, Mechanical, Electrical Instrumentation, and Piping and Intertoll Europe businesses. "The asset and business sale process remains on track and in accordance with the adopted plan," the status update read.
Compiled by Lameez Omarjee