Basil Read rescue plan ‘still on track’
Basil Read and other construction companies have struggled since government slowed infrastructure spending
Basil Read CEO Khathutshelo "K2" Mapasa says the plan to save the construction company is on track despite the resignation of its CFO.
Pieter van Buuren will leave his role as CFO with effect from September 21, the 66-year-old company said on Monday.
Mapasa said a replacement will be "found soon" and Basil Read still has "a strong financial management team" that is capable of carrying out their portion of a business rescue plan that was released last week.
"Our CFO has left to pursue other opportunities. He is not leaving for any untoward reason and his exit does not affect the turnaround plan at Basil Read," Mapasa said.
Basil Read and other construction companies that have been household names for decades have struggled after government spending on infrastructure slowed markedly following a boom in anticipation of the 2010 World Cup. Some, including WBHO, Group Five and Murray & Roberts, have found work offshore. Road builder Raubex is growing a home construction business.
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Basil Read’s rescue plan was published last week to give creditors some idea of how much money owed by the company they could expect to receive and when.
The company entered a business rescue process in June so rescue practitioners Adamantem, and Matuson & Associates could develop the plan, which would keep the construction company afloat while ensuring that its creditors are better rewarded than if Basil Read were liquidated.
The practitioners said in the conclusion section of the plan that "notwithstanding the inevitable risks and challenges" there is a "reasonable prospect of a successful business rescue, that balances the rights and interests of all relevant stakeholders".
The plan stressed that Basil Read Mining, which provides services for mining companies, has long-term growth potential.