Basil Read closes in on funds
Construction firm, which went into business rescue in June, is close to securing money to continue doing business
Construction group Basil Read, which is facing financial ruin, says it is close to securing the money it needs to settle its current liabilities and continue doing business. The company is pinning its survival on housing and mining services as it looks to reinvent itself after having been unable to sustain itself on traditional infrastructure projects. The group went into business rescue in June. On Thursday CEO Khathutshelo Mapasa said the company was nearing its funding target and two of its businesses held strong promise. Business rescue allows a company to suspend all claims to creditors and restructure outstanding debt. This process aims to help a number of struggling entities to refinance themselves. On September 28 2007, Basil Read’s share price hit a high of R33 when the company had an attractive order book and was building the Mbombela Stadium for the 2010 World Cup, but its fortunes have since soured, and its share price had crashed to 4c by June 29, before the stock was s...
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