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The joint business rescue practitioners (BRPs) for Group Five and Group Five Construction on Monday confirmed that subsidiary companies of these entities would continue to operate as going concerns, as they do not fall directly into business rescue proceedings.
This is also the case for Group Five’s international subsidiaries and holdings.
The subsidiary companies comprise those in the Investments and Concessions and Manufacturing clusters.
Notwithstanding the business rescue proceedings, the BRPs will be responsible for identifying the optimal way forward for all of these entities and investments.
As announced on March 22, the BRPs are currently assessing the status and viability of all ongoing projects and contracts.
The BRPs are currently also assessing the status, contribution and needs of the Investments and Concessions and Manufacturing clusters, and how these should be dealt with in terms of the rescue.
This includes the evaluation of expressions of interest that have been received and the implementation of sales processes already under way in respect of a number of these businesses.
Subject to this assessment, teams, clients, joint venture partners, subcontractors and suppliers will be informed of the status of each project and the way forward as a matter of urgency, the BRPs said in a statement on Monday.
The BRPs further highlighted that they have confirmed with Group Five team leaders that, in the interim period, sites should not be demobilised until there has been engagement from Group Five representatives and that safety and stability on project sites remains a priority.
In addition, the practitioners are in ongoing contact with the group’s lenders with regard to their group exposures and in an effort to obtain new funding in the form of “post commencement funding” to secure operational and employee stability.
In the interim, the BRPs said they would seek to maintain continuity for employees, but warned that, given the financial distress prevailing within Group Five and certain projects, as well as activities going forward, it may be necessary to implement further retrenchments.
The group continues to operate under the supervision of the BRPs, while the directors of the company remain on the Group Five board.