Concor enters business rescue with thousands of jobs and a flagship bridge contract at stake
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Concor, the South African construction group wholly owned by the Government Employees Pension Fund and the Unemployment Insurance Fund, has entered voluntary business rescue with contingent liabilities on current projects above R1.6 billion.
Concor, now 100% owned by the Government Employees Pension Fund (GEPF) and the Unemployment Insurance Fund (UIF), has entered voluntary business rescue proceedings after running into financial distress. The GEPF holds 81.25% of the shareholding and the UIF 18.75%, with the Public Investment Corporation managing both funds' assets.
The proceedings cover Concor Holdings, Concor (Pty) Ltd, Concor Construction and Concor Mining. Although chief executive Marius Koen stated in a sworn statement supporting the business rescue that Concor "has 0 employees", it is reliably believed that the distress places the employment of more than 2,200 people in jeopardy - about 600 permanent head office employees and 1,500 fixed-term contractors.
In the statement, Koen disclosed contingent liabilities related to current projects exceeding R1.6 billion, estimated creditors of R190 million made up mainly of loan funding from the shareholders, default notices issued on those loan facilities, inter-company payables of R34 million, and contingent liabilities from litigation estimated at R218 million, including matters tied to OptiPower and Murray & Roberts. Cash and cash equivalents amount to only R4,000, with trade and other receivables of R11,000.
One of the group's biggest infrastructure contracts is as a joint-venture partner on the Msikaba bridge in the Eastern Cape, part of Sanral's multi-billion-rand N2 Wild Coast Toll Road development. The OptiPower and Murray & Roberts contingent liabilities follow an unsuccessful High Court application by Concor in May 2025 to stop demands being made on its guarantees for the Wolf Wind Farm project, which it was developing in a joint venture with M&R's OptiPower division.
"The final asset and liability position of the company, including the amount owing to its creditors and the extent of its contingent liabilities, will be determined once the outstanding financial information has been obtained and verified," Koen said. Concor's investments in subsidiaries and inter-company receivables total R811 million, with R25 million due from subsidiaries.