The business rescue practitioners (BRPs) of Group Five Construction and Group Five Limited, Dave Lake and Peter van den Steen of Metis Strategic Advisors, have confirmed the formal termination of the business rescue proceedings of both companies following the substantial implementation of the adopted business rescue plans.
When business rescue proceedings began in March 2019, Group Five faced about R7-billion in creditor and contingent exposures, more than 2 300 creditors, 119 active projects and close to 6 000 employees employed in 180 companies across 38 countries.
Independent analysis by PwC at that time calculated that, in the alternative scenario of an immediate liquidation (as opposed to business rescue), secured creditors would receive as little as 65c in the rand and concurrent creditors only 3.4c in the rand, with no prospect of any shareholder recovery.
Following the termination of the business rescue proceedings, the company says the picture today is “materially different”.
The BRPs confirm that all secured and preferent creditors have been paid in full and that all concurrent creditors have been paid in full, or funds for their payment have been fully provided for in accordance with the adopted plans.
