Group Five’s construction subsidiary will have a cash shortfall of R2.4bn in the year to end-June 2019, it says. Group Five’s board on Monday instituted business-rescue proceedings because its wholly owned subsidiary G5 Construction could not secure additional funding to meet working capital requirements. Group Five has filed a notice with the Companies and Intellectual Property Commission (CIPC), an agency of the department of trade, whose functions include licensing business-rescue practitioners. In the notice, which is a legal requirement to give the business-rescue proceedings effect, Group Five disclosed details of its board meeting held in Sandton last Monday morning, at which the resolution to go into business rescue was taken. In the notice, the company’s acting CEO Thabo Kgogo laid bare the extent of G5 Construction’s financial state and its urgent financial needs. “It is estimated that the G5 Construction Group, under current market conditions, requires R3.6bn to fund its ...

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