Group Five to sell crown jewels in bid to survive
The construction and engineering group's detailed business rescue plan will be ready in June
Troubled construction and engineering company Group Five intends to sell the only profitable assets it owns to help it survive. The move is an indication of how dire the group’s financial position is after posting a R1.3bn loss in 2018. The general downturn in the construction sector and a $106.5m penalty in Ghana conspired to wreak havoc on Group Five’s finances. Group Five’s attempts to stop Ghanaian company Cenpower Generation from calling up its retention and performance bonds suffered a setback when the high court in Johannesburg dismissed its interdict application. Cenpower claimed penalties for delays in the execution of a 340MW fuel-fired thermal power station at Kpone, near Tema, 24km east of Accra. The $410m project was meant to be commissioned in October. Group Five has blamed the missed deadline on faulty fuel from Cenpower. The provision of fuel was Cenpower’s responsibility, said Group Five. Companies in the construction industry use performance bonds to mitigate the r...