Telecommunications infrastructure provider Africa Cellular (AC) Towers has been served its final liquidation order by the South Gauteng High Court.
This follows the company's long-drawn-out battle to secure funding and get on top of dwindling revenue and rising debt.
Established in 1999 and listed on the JSE's alternative exchange (AltX), in 2006, AC Towers was placed under provisional liquidation last month, subsequent to one of its major creditors filing an application. This was despite the company reporting it had reached an agreement for the restructuring of funding from the Industrial Development Corporation, to the tune of R99 million.
AC Towers has warned it was in strategic discussions regarding its “going concern prospects and funding requirements” since at least November last year.
The company's financial results, for the six months to August (published in December) indicated it had not been able to turn around its loss-making position. In the first half of 2011, the group turned over R109.2 million, compared with R102.8 million in the first half of 2010. It reported a net loss of R54.7 million, an improvement on the previous R85.5 million loss.
At the end of May, three days before the suspension of its JSE AltX listing, AC Towers' shares were down by 33.3%.
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