Construction workers cannot return to work under level 4 restrictions
07 May 2020 - 14:11
byAlistair Anderson
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The Covid-19 pandemic has placed the business rescue of construction group, Group Five, largely on hold.
The company's business rescue practitioners said in an update for April that the pandemic had caused delays in their efforts to turn Group Five around.
The group is made up of two separate businesses: Group Five Construction and Group Five.
“Due to the economic and social consequences directly associated with the Covid-19 pandemic and the lockdown of our country, the business rescue practitioners anticipate delays in the completion and realisation of multiple processes and objectives in the business rescue proceedings of both the company and Group Five Construction,” the practitioners said.
Construction groups have been unable to work in terms of the state’s lockdown regulations. The Master Builders Association has called for the construction industry and its affiliate industries to be able to return to work while following strict health protocols.
The sale process for Group Five’s Everite business has been temporarily suspended.
“The business disruption arising from Covid-19 and the lockdown has been material on the Everite business, the sale process itself, and on bidders participating in the sale process. The business rescue practitioners will continue to monitor the situation and will make a decision on the resumption or relaunching of the sale process at the appropriate time,” they said.
The legally separate business rescue process for Group Five Construction was ongoing.
“We again record that there currently remains no realistic prospect of any financial recovery by the company from the Group Five Construction business rescue process,” it said.
Group Five would also continue to pursue the resolution of all legal disputes against the company, by means of negotiation or, where applicable, by means of litigation, arbitration and adjudication matters.
The practitioners said they had engaged with all disputed creditors who notified the company of their disputed claims in accordance with section 10 of their rescue plan, and “for the most part, the disputes have been resolved”.
“The business rescue practitioners are confident that the remaining disputed claims will be resolved with disputed creditors of the company in a timeous manner through the process set out in the dispute resolution mechanism,” they said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Covid-19 stalls Group Five’s business rescue
Construction workers cannot return to work under level 4 restrictions
The Covid-19 pandemic has placed the business rescue of construction group, Group Five, largely on hold.
The company's business rescue practitioners said in an update for April that the pandemic had caused delays in their efforts to turn Group Five around.
The group is made up of two separate businesses: Group Five Construction and Group Five.
“Due to the economic and social consequences directly associated with the Covid-19 pandemic and the lockdown of our country, the business rescue practitioners anticipate delays in the completion and realisation of multiple processes and objectives in the business rescue proceedings of both the company and Group Five Construction,” the practitioners said.
Construction groups have been unable to work in terms of the state’s lockdown regulations. The Master Builders Association has called for the construction industry and its affiliate industries to be able to return to work while following strict health protocols.
The sale process for Group Five’s Everite business has been temporarily suspended.
“The business disruption arising from Covid-19 and the lockdown has been material on the Everite business, the sale process itself, and on bidders participating in the sale process. The business rescue practitioners will continue to monitor the situation and will make a decision on the resumption or relaunching of the sale process at the appropriate time,” they said.
The legally separate business rescue process for Group Five Construction was ongoing.
“We again record that there currently remains no realistic prospect of any financial recovery by the company from the Group Five Construction business rescue process,” it said.
Group Five would also continue to pursue the resolution of all legal disputes against the company, by means of negotiation or, where applicable, by means of litigation, arbitration and adjudication matters.
The practitioners said they had engaged with all disputed creditors who notified the company of their disputed claims in accordance with section 10 of their rescue plan, and “for the most part, the disputes have been resolved”.
“The business rescue practitioners are confident that the remaining disputed claims will be resolved with disputed creditors of the company in a timeous manner through the process set out in the dispute resolution mechanism,” they said.
andersona@businesslive.co.za
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