Construction and engineering company Stefanutti Stocks has secured additional short-term funding of R227.5-million, the JSE-listed firm said on Thursday, noting that it remained in discussions with lenders to secure additional tranches of funding.
The latest funding from its primary banker and guarantee providers was the third tranche of funding secured since mid-year. In July, it received the first tranche of R120-million as specific ring-fenced project funding and in November secured R391-million in a second tranche.
The funds from the first and second tranches were used to meet short-term liquidity requirements.
Stefanutti said that it continued to explore and evaluate longer term, cost-effective funding solutions.
The company recently appointed a strategic restructuring team to develop and assist with the implementation of turnaround interventions for the company. The restructuring team would investigate funding options, assess the sale of noncore assets and capital structure analysis, as well as internal restructuring initiatives.
Stefanutti is operating a strained South African construction market, which is at a historic low, with a continued slowdown in construction activity and an aggressive contracting environment.
In November, the firm reported that its order book was at its lowest level since August 2016, at R12.8-billion, compared with the R14.3-billion order book reported in May. About 30% of Stefanutti rder book is outside South Africa’s borders.