Photo by: Duane Daws
Civil engineering group Protech Khuthele Holdings, which last week filed for voluntary business rescue, has asked the JSE to suspend trading in its shares.
The group said its decision to request the voluntary suspension was based on the fact that there was still material uncertainty regarding the company’s going concern and owing to the business rescue plan being at an early stage.
On Monday, Protech reported that Gavin Gainsford had been appointed as the business rescue practitioner to assist the group as it moved to stabilise as a going concern.
The group fell into the red during the financial year ended February, as its project in the Democratic Republic of Congo hampered performance, with the group expecting a loss a share of between 23c and 27c and a headline loss a share of between 24c and 28c.
A R40-million nonpayment from a debtor and a lack of funds to pay its own immediate bills had pushed Protech into voluntary business rescue on June 2.
On June 3, the group applied for the business rescue of seven Protech subsidiaries – Protech Khuthele Properties; Impact Compaction; Protech Khuthele Property Investments; Protech Readymix; Pela Plant; South African Road Testing Services; and Protech Khuthele.