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Racec secures $40m short-term funding amid Sierra Leone dispute

4th April 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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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.

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Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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