Murray & Roberts business rescue plan approval will see it sell its mining businesses

MURRAY & Roberts Limited (MRL) is selling its mining businesses in terms of a business rescue plan that was approved by creditors this week, but there will no distribution to shareholders.

- EDWARD WEST

MRL was placed in business rescue on November 22, 2024, following significant liquidity constraints by the South African-based international engineering and construction group over a prolonged period.

The business rescue practitioners said Thursday that creditors had approved MRLs business rescue plan on April 8, and in terms of this plan, MRLs main assets, its mining businesses, would be sold to a consortium of investors led by South Africa-based asset management firm Differential Capital. Thereafter, MRL would be wound up.

The Differential investors have already invested in MRL with post-commencement funding, which has provided the group with sufficient cash flow to continue its operations, allowing the business rescue process to take place.

Assets being sold include Murray & Roberts Cementation, which does contract shaft sinking, mine development and other specialised mining operations; Cementation Canada; and Terra Nova Technologies, which provides services such as designing and supplying conveying systems, crushing plants, and other equipment for the mining and other heavy industries.