Construction firm Basil Read said on Thursday that a creditors meeting to consider its business rescue plan was held this week, but that it had been adjourned to allow more time for affected persons to engage and consider the proposals made in the plan.
The meeting will be reconvened on September 27, the company stated.
Should the plan not be approved and adopted, liquidation proceedings would follow.
Since Basil Read announced its entry into business rescue in June, it has secured R265-million in funding and its business rescue plan was published in August.
In March, Basil Read reported a net loss after tax of R1-billion for the year ended December 31, as a result of a number of lossmaking legacy contracts, the write-off of goodwill in the roads division and the reversal of deferred tax assets in lossmaking entities.
At year-end, the group’s current liabilities, at R2.1-billion, exceeded current assets, at R1.4-billion, and the group’s cash had decreased to R126.4-million.
The company’s appointed business rescue practitioners – Siviwe Dongwana and John Lightfoot – believe the construction division of Basil Read can be successfully turned around, with an improvement in cash flow anticipated by the end of a two-year period in which the company will complete 17 construction contracts, for which it will use the R265-million in funding.