Group Five sees full-blown war against business rescue
Shareholders will get nothing out of it, so they want a forensic investigation into the distressed company
As Group Five (https://www.sharenet.co.za/v3/quickshare.php?scode=GRF) creditors prepare to vote on the troubled company’s business rescue plan on Wednesday, some shareholders want its guarantee for a R650m loan to a subsidiary to be declared null and void.
As things stand, Group Five shareholders have been told they will get nothing from the business rescue process. Already they have helplessly watched the value of their investments decimated over the past 10 years as infrastructure projects dried up.
So, with nothing to gain, a group of shareholders – whose aim is to collapse the business rescue process – have zeroed in on the R650m loan guarantee to subsidiary Group Five Construction. They argue that the guarantee for the loan, from a group of unnamed funders, was in breach of Section 45 of the Companies Act...