JSE-listed Africa Cellular Towers (ACT) has been placed into provisional liquidation after a major unnamed creditor was granted an order for the liquidation on Friday, 1 June.

In a statement issued through the JSE’s Sens news service, ACT told shareholders on Monday that the company had been placed into “provisional winding-up”. The shares had been suspended from trading on 31 May after the creditor had “perfected a cession of debtors” that meant the company was not allowed to trade and perform on current contracts or use money in its bank accounts or any money received from debtors.

When the shares were suspended last week, they were changing hands at 5c each. The counter has lost 61,5% of its value over the past year.

The company said last week that it had received two applications for liquidation, with a third expected from a “major creditor”. It said its board was “considering all options” and might not oppose the liquidation applications and asked the JSE to suspend trading in its shares.

On 16 May, ACT told shareholders that it had reached an agreement in principle with the Industrial Development Corp (IDC) that would see the IDC restructuring its funding line of R99m – provided the company secured an equity partner to underwrite a rights issue. It said at the time that it had received a letter of intent from a funder to underwrite the issue for an amount of R7,5m and that a final decision by the IDC’s credit committee would be made by 25 May.

“If successfully concluded, the restructuring will provide the company with additional working capital of R51m,” ACT said at the time.

ACT, whose CEO, Jacques de Villiers, was not immediately available for comment, specialises in towers for the electricity transmission and distribution and telecommunications industries. It also manufactures and installs equipment shelters used to house cellular tower equipment. — (c) 2012 NewsCentral Media