Esor Construction, a subsidiary of Esor [JSE:ESR], has applied for business rescue.
On Monday, it said in a note to shareholders that it was in financial distress and owed creditors about R130m.
The main causes were significant losses incurred on certain construction contracts in the current and prior financial years, the challenging economic environment in the construction sector, and an inability to secure short- and medium-term funding.
Various strategies had been implemented to mitigate the company’s negative position, it said.
These included expediting completion of legacy loss-making contracts to minimise further losses; disposing of idle and non-core assets; and renegotiating payment terms with suppliers and subcontractor…
Read the full article at: https://www.fin24.com/Companies/Property/esor-construction-files-for-business-rescue-20180813