Group Five said the disposals would be done in order to reduce the group's liabilities, to meet bank lending obligations and to meet its working capital requirements during the business rescue proceedings. 

But the group said the details of which assets have been or will be disposed of will only be made public at the end of June.

Last month, Group Five was placed into business rescue and simultaneously suspended the listing of its shares on the Johannesburg Stock Exchange (JSE), while the board appointed joint business rescue practitioners.

Formerly one of South Africa's biggest construction groups, Group Five needs R3.6 billion to fund its working capital requirements this year.

The company is financially distressed and has current liabilities which materially outweigh its current assets. The group's share price has fallen from nearly R74 per share to a mere 89 cents in just over a decade.

A retrenchment process was already underway at the group which employs more than 7,000 people.

Group Five is addressing this imbalance through a moratorium on pre-business rescue creditors, post-commencement funding provided by a consortium of banks, negotiations with counterparties, and the disposal of a number of different assets to a multiple of potential arms' length purchasers.

The company said it has been consulting with the JSE and has undertaken that it will provide shareholders with monthly updates on key disposals and other significant milestones in the business rescue proceedings. 

The company's business rescue practitioners said that given the urgency of the disposals, negotiations do not allow time for shareholder approvals, adding that all alternative methods of financing had been exhausted and the only option remaining was to undertake the disposals.

"Shareholders are advised that the creditors of the company have approved the extension of the date of publication of a business rescue plan to 28th June 2019," it said.

"The Business Rescue Plan will include details of the proposed rescue plan for the company, as well as (inter alia) a summary of disposals effected to date as well as those contemplated to effect the rescue of the company."

ANA