Group Five BRPs still committed to Aug 30 deadline for business rescue plan

12th July 2019 By: Tasneem Bulbulia - Senior Contributing Editor Online

Group Five on Thursday reiterated that its business rescue practitioners (BRPs) plan to publish a business rescue plan by August 30.

This follows after it announced last month that creditors had agreed to extend the deadline for the publication of the plan from Jun 28.

The company further reiterated its continued work to sell subsidiary companies, operating divisions, proprieties and/or shareholdings that may be disposed of to relieve the burden of the secured debt owed by it, as well as provide working capital for the proceedings.

There are still several projects at various stages and for which post-start financing has been provided, or mechanisms have been put in place to ensure the completion of these.

Since inception of proceedings, payments under certain guarantees have been called for and made, amounting to about R105.1-million.

There have also been further notices received calling for payment under other guarantees, however, these notices are being considered and may, where appropriate, be defended.

Meanwhile, nonexecutive director and chairperson Nonyameko Mandindi, along with nonexecutive directors Michael Upton, Edward Williams and Cora Fernandez have resigned with effect from June 25.

The company’s external auditors PwC resigned on July 2. Group Five’s board has started the process of appointing new auditors.