Esor’s rescue plan to be ready in February
Esor Construction’s business rescue practitioners are weighing options to save the troubled company
Esor Construction’s creditors have given the distressed construction firm’s business rescue practitioners until February 2019 to publish a business rescue plan. Esor Construction, a subsidiary of civil engineering and construction group Esor Limited, went into business rescue in August. The business rescue plan will give an indication as to whether the company, which, at the end of February, owed creditors approximately R130m, can still be rescued. Following the commencement of the rescue proceedings, Esor Limited requested the suspension of its shares on the JSE in August. On Wednesday, the company said the reinstatement of its shares depended on the rescue plan. The financially distressed Esor Construction went into business rescue because of significant losses it suffered on some of its contracts. The company also blamed its woes on the inability of the government and municipalities to award contracts. Esor said it was unable to obtain further short- to medium-term funding. In a ...
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