South African construction giant in business rescue gets R80 million boost

Murray & Roberts Limited has secured an additional R80 million in post-commencement finance as part of its business rescue proceedings.

Murray & Roberts Limited (MRL) is a downstream subsidiary of Murray & Roberts Holdings, which is currently in the process of being liquidated.

However, Murray & Roberts Holdings’ liquidation has no impact on MRL’s business rescue proceedings, which remain on course.

In a statement released on Wednesday, 3 September, MRL confirmed that its business rescue practitioners (BRPs) have secured an additional R80 million in post-commencement finance (PCF).

This funding was provided by the Differential Consortium, which is also involved in a purchase agreement with MHL for its subsidiary Mining Interests.

This additional R80 million facility builds on prior PCF support secured since MRL entered voluntary business rescue on 22 November 2024.

“Funding to date has been instrumental in stabilising MRL’s business rescue proceedings, providing the BRPs with the time to develop, secure adoption of, and advance the implementation of a business rescue plan,” the company said. 

“That plan is underpinned by the acquisition of MRL’s mining-related subsidiary businesses – including the cementation operations in both Africa and the Americas – by a group of investors led by Differential Capital.” 

“Once completed, the transaction is expected to safeguard approximately 2,800 jobs across these businesses, with a particular emphasis on preserving South African jobs in Cementation Africa.”

The company added that PCF has enabled the BRPs to manage unavoidable retrenchments within MRL itself and to honour statutory severance obligations to affected employees in full.

The additional R80 million facility is expected to further strengthen MRL’s ability to sustain momentum toward the transaction’s completion. 

MRL’s BRPs reiterated their confidence that the adopted business rescue plan represents the most sustainable and viable path forward. 

“Its successful implementation is expected not only to protect livelihoods but also to preserve scarce technical skills across the mining and engineering sectors,” they said..