Group Five’s business rescue practitioners are seeking the consent of a majority of its creditors to extend the publication date of the business rescue plan to 30 August 2019.
The BRP’s site the complexity of the business rescue proceedings as the reason for this request.
While in June they noted it was a very unlikely outcome that the shareholders of Group Five will receive any value back on their investments, they have been working to secure further post commencement finance funding from the lender consortium and the business rescue process remains on track.
In addition to the disposals announced earlier in the year, further binding agreements have been entered into or are in the process of being drafted for the disposal of:
- the African SMEIP business and shares in subsidiary companies;
- the Northpoint property development;
- various properties not being utilised in the ordinary course of business; and
- plant & assets not being utilised in the ordinary course of business.
These disposals will if completed realise total proceeds of in excess of c.R1 billion on acumulative basis. Some of the above disposals are subject to concluding final binding agreements and some to fulfilling conditions precedent in final binding agreements in order to be concluded.
Proceeds received from assets subject to security agreements will be utilised to reduce the relevant secured debt, and the balance of unsecured proceeds has been (or will be) utilised to settle working capital requirements.