Struggling Stefanutti works on restructuring plan

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Struggling Stefanutti works on restructuring plan
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Construction company battles to stay afloat as funding requirements dwarf its market capitalisation

Stefanutti Stocks, whose funding requirements jumped to almost R1bn earlier this year mainly due to non-payment by clients, has appointed a team to develop a restructuring plan as the group battles to stay afloat.Like several other companies in the struggling construction sector, Stefanutti, which has a presence in SA, Sub-Saharan Africa and the United Arab Emirates, is in urgent need of funds to ease its liquidity problems, which threaten its survival amid lack of infrastructure spending.

“Once finalised, the restructuring plan will be considered by the board of directors for approval. Thereafter, shareholders will be updated as to the restructuring plan and the anticipated timing of the implementation thereof.” In July the company said it had received R120m in ring-fenced project financing as the first tranche of its funding plan. On November 21 it said it had received additional funding of R391m, which reduced the company’s funding needs to R595m.

In the six months to end-August, the company’s cash on hand fell by more than double from R880.7m to R396.3m. It partly attributed the drop to delayed payments from customers.

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