Construction group Basil Read, which is facing financial ruin, says it is close to securing the money it needs to settle its current liabilities and continue doing business.

The company is pinning its survival on housing and mining services as it looks to reinvent after having been unable to sustain itself on traditional infrastructure projects. The group went into business rescue in June. According to CEO Khathutshelo Mapasa, the company was nearing its funding target and two of its businesses held strong promise. Business rescue allows a company to suspend all claims to creditors and restructure outstanding debt. This process aims to help a number of struggling entities to refinance.

On 28 September 28, Basil Read’s share price hit a high of R33 when the company had an attractive order book and was busy building Mbombela Stadium for the 2010 World Cup, but its fortunes have since soured and its share price had crashed to 4c by 29 June, before the stock was suspended.

Founded 66 years ago, the firm’s core businesses included roads and infrastructure development but a sharp drop in government spending on infrastructure projects as well as greater-than-anticipated costs for private work, including the building of an airport in St Helena, have forced Basil Read to review its operations.

The construction company lost 93% of its market capitalisation in 2018 and was placed into business rescue.