Murray & Roberts Holdings faces liquidation after business rescue fails

Murray & Roberts Holdings Limited is headed towards liquidation after its board recommended shareholders approve a special resolution for a voluntary winding-up of the company. The decision follows the failure of a business rescue plan for its subsidiary, MRL, due to substantial debt and operational losses, particularly within its OptiPower division. MRL, placed into business rescue in November 2024, saw its liabilities swell to approximately ZAR 3 billion, driven by post-commencement finance of ZAR 132 million and guarantee calls of ZAR 745 million. A sale of MRL's core assets, including The Cementation Company (Africa) Pty Ltd and Murray & Roberts United Kingdom Limited, is underway, however, Murray & Roberts foresees that proceeds from the asset realisation will likely be sufficient to repay secured creditors, concurrent creditors may likely only receive partial repayment, and the company does not foresee there being a distribution to be paid to the Shareholders of the Company. The general meeting is scheduled for 19 June 2025 for a vote on the voluntary liquidation.