Following the first business recue meeting with Group Five’s creditors on Tuesday, the appointed business rescue practitioners (BRPs) – David Lake and Peter van den Steen, of Metis Corporate Advisory – requested an extension of the deadline for the submission of a business rescue plan to June.
The BRPs said Group Five’s business rescue was arguably one of the most material business rescues that has taken place in the country.
“We have to complete a significant amount of work to put ourselves into a position to be able to formulate, get approved and then implement a considered rescue plan for the Group Five businesses, which will be in the best interest of all stakeholders.”
Currently, Group Five has liabilities of R4.6-billion against assets of R2.2-billion.
The BRPs said they remain focused on minimising retrenchments, preserving and continuing the operating businesses, delivering projects that are viable and maximising the returns to the group’s creditors.
“We are working to reduce the group’s funding requirements by repositioning and/or terminating business activities that place an undue burden on the group and completing the sale of businesses to interested parties that have the financial capacity to take those businesses forward to ensure their sustainability and to preserve as many jobs as possible.
“Our initial evaluations have indicated that even against the risks and challenges that might derail the business rescue process, with the cooperation of all stakeholders there is a reasonable prospect of the business rescue being successful.
“This remains our main objective. Once we present our business plan at the end of June this year, a meeting of creditors will be called to vote on the plan. This plan will outline how we can restructure the group to deliver on our objectives,” the BRPs explained.
They added that, to effectively deal with creditors and employees, representative committees will be established to liaise with the company on a regular basis.