Protech advised the market in a SENS announcement dated March 13 that “Group liquidity will remain tight until all payments due on the DRC projects are paid during the next six months and the effects of the new secured work generates positive cash flows”.
Protech said yesterday: “The board of directors were today made aware that the anticipated receipt of monies from a substantial debtor of some R40 million, could be delayed or possibly not paid in full, thus adversely affecting Protech’s liquidity.
“This also follows demands for immediate project expenses incurred by suppliers which Protech is unable to pay. Protech is thus unable to meet its commitments which are due immediately and has no choice but to lodge an application for business rescue,” it said.
Victor Dingle, finance director and acting chief executive of Protech said the board was unanimous in its decision and believed “the voluntary rescue process will afford the directors the opportunity to develop and implement the business rescue plan”.