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Stefanutti asks for more time

Andries Mahlangu Markets Writer

Stefanutti Stocks, which is technically insolvent as its current liabilities exceed the value of its assets, said on Thursday it is in talks with its lenders to extend by another year the repayment of part of its loan after a delay in selling some of its assets.

Stefanutti Stocks, which is technically insolvent as its current liabilities exceed the value of its assets, said on Thursday it was in talks with its lenders to extend by another year the repayment of part of its loan after a delay in selling some of its assets as part of a restructuring plan.

The unprofitable construction company was meant to repay a loan balance of R420m by February 2022, but is now lobbying its lenders to push that out by a year, after a process to sell its materials handling and tailings management subdivisions fell through.

The sale of its 49% stake in Al Tayer, an Emirati building and interior fit-out company, was delayed by regulatory process.

CEO Russell Crawford has overseen the restructuring plan that included jobs cuts and fire sales of noncore assets.

Its losses from continuing operations narrowed 59% to R103.38m in the six months to August, but its order book shrank to R4.6bn from R7.4bn year on year.

Stefanutti is also ensnared in a lengthy and costly legal tussle with power utility Eskom, to recover money for services rendered at the multibillion-rand Kusile power station. The company gave no update on the matter, saying disclosure may prejudice its position.

The July 2021 civil unrest negatively affected its coastal and inland regions, resulting in time delays and damages suffered on 17 projects at an estimated cost of R8m.

Like many other construction firms, Stefanutti has borne the effect of a weaker economy in SA, where large infrastructure projects have been scarce over the last decade.

Stefanutti Stocks operates throughout SA and Southern Africa, with multidisciplinary expertise that includes concrete structures, marine construction, piling, geotechnical services, and roads and earthworks.

It also operates bulk pipelines, material handling, tailings management, all forms of building works including affordable housing, mechanical, electrical and piping.

Several construction companies in SA, including Group Five and Basil Read, are in business rescue — measures meant to save the company from bankruptcy. mahlangua@businesslive.co.za

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2021-11-26T08:00:00.0000000Z

2021-11-26T08:00:00.0000000Z

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