Group Five sells another business
The construction firm is disposing assets to ensure better returns for creditors.
The business rescue practitioners (BRPs) of embattled construction company Group Five on Monday announced the successful sale of the Group Five Projects business to the Teichmann Group.
The transaction includes various of Group Five’s African construction businesses, which are market leaders in the structural, mechanical, electrical, instrumentation and piping construction industries throughout Africa.
The transaction includes all assets, including the construction plant and equipment in these locations.
An existing construction project at a mine in Zambia will still be completed by Group Five, as will a project in South Africa.
“The new entity will be branded as T3 Projects. The team’s record in Africa has ensured the effective and efficient delivery of construction projects in the mining and industrial sectors across the continent, which will complement the Teichmann Group’s existing product offering,” Group Five said in a statement.
Group Five’s BRPs in May announced that they would start with a series of disposals to reduce financial liabilities as part of the company’s business rescue proceedings. The group filed for business rescue in mid-March.
In terms of the Group Five Construction business rescue plan, which its creditors approved on September 11, secured creditors were expected to receive between 66c and 78 cents, compared with 18 cents they would have received had the company been liquidated.
Secured creditors are the banks that provided funding after Group Five and Group Five Construction went into business rescue. The money, described as post-commencement funding, covers working capital requirements during the course of the business rescue process.