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Rescue practitioner appointed for Protech

Rescue practitioner appointed for Protech

Photo by Duane Daws

9th June 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Gavin Gainsford has been appointed as the business rescue practitioner who would assist financially distressed JSE-listed Protech as it moved to stabilise as a going concern.

“The nomination and acceptance letters for Gainsford to be licensed as the business rescue practitioner of [Protech and its subsidiary] companies have been submitted to the Companies and Intellectual Property Commission and the various licences have been received,” the civil engineering and construction company said in a statement.

Protech 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.

The company warned shareholders to exercise caution when dealing with the company's securities, as the full impact of the business rescue application was still to be determined.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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