Esor can be saved, say business rescue practitioners
BDO Business Restructuring advises against Esor’s liquidation and is optimistic that the firm can be a going concern again
Business rescue practitioners for financially distressed Esor Construction said on Thursday that the company can be saved. BDO Business Restructuring’s optimism revives hope that the civil engineering and construction firm, which went into business rescue in August 2018, can be brought back to life as a going concern. “The business rescue practitioners are still of the view that there is a reasonable prospect of developing and implementing a business rescue plan for the company that will ensure that, on acceptance of the plan, it will continue in existence on a solvent basis,” Esor said in a statement. But it said the company’s revival requires the re-organisation of its finances and an arrangement with creditors over its liabilities. Absa is one of the firm’s largest creditors. In October 2018, the bank demanded payment of more than R56m. When it went into business rescue, Esor’s total liabilities were R597m while the estimated forced sale value of its assets was R122.7m. On Thursd...
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