Struggling Group Five files for business rescue
Group Five and peers including Basil Read and Erbacon have succumbed to a depressed construction market in which major projects have failed to materialise
Group Five says it has filed for business rescue — a process aimed at rehabilitating financially distressed companies — because lenders have not been willing to give it more funding. The contractor and a number of its peers, including Basil Read and Erbacon, have succumbed to a depressed construction market in which major projects have failed to materialise owing to the state’s strained finances. Group Five, whose shares were at R45 about five years ago, said on Tuesday that it had asked the JSE to suspend trading in its stock, which was priced at 89c at Monday's close.
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