Rail engineering group Racec has secured a R40-million short-term mezzanine funding facility from an undisclosed financial institution to meet its short-term working capital requirements and fund any dispute resolution proceedings relating to a project in Sierra Leone.
The facility was secured as a result of protracted delays and associated contractual disputes over the payment of funds in excess of $11-million related to a contract in Sierra Leone completed by Racec.
The company’s management said it remained optimistic that the dispute would be resolved in the short term.