South Africa's Group Five In Business Rescue After Lenders Pull Plug

South African builder Group Five filed for bankruptcy protection on Tuesday after lenders pulled funding, threatening the collapse of one of the biggest names in the local construction industry and more than 8,000 jobs, Reuters reported. Group Five, which traces its roots back to the 1970s with the tie-up of five construction companies, has struggled to make money for years in an industry squeezed by stagnant economic growth and a pullback in infrastructure spending by the government and private sector. Its cash flow problems were exacerbated late last year when Ghana’s Cenpower Generation Company claimed a total of $62.7 million over a building delay to a power plant in the west African country. The project has since been terminated. “It appears to be reasonably unlikely that the company will be able to pay all of its debts as they fall due and payable within the immediately ensuing six months,” Group Five said. Read more