JSE-listed PSV Holdings' board has resolved that the company is in financial distress and has opted to file for business rescue.
A business rescue practitioner (BRP) will be appointed in due course.
In February, the board began monitoring the financial position of the PSV group and engaged with key stakeholders, including lenders and creditors.
Moreover, Standard Bank has attached PSV Industrial customer accounts in terms of an arrangement entered into in 2015.
Accordingly, the directors of PSV Industrial, a wholly owned subsidiary of PSV, have also resolved to place PSV Industrial into business rescue.
Initiatives to recapitalise and turn the business around are ongoing as there appears to be a reasonable prospect of rescuing the company and its subsidiary, PSV said in a statement on Monday.
It also noted that the company would work with the appointed BRP to achieve these objectives.