Julius Berger Nigeria Plc, is experiencing a bad run due debt burden amounting to over N124 billion from unpaid executed construction contracts and loans taken from commercial banks.
Huge debts over unpaid executed contruction contracts alongside loans obtained from commcercial banks have compounded the financial woes of the famous multinational construction giant in Nigeria, Julius Berger Nigeria Plc.
The company is currently being forced to downsize the strength of its labour force. It should be noted that the company’s 2014 financial year dropped by seven per cent.
The Guardian reports that the debt profile of the company is attributable to N90 billion debt owed the company by both private and public organisations and over N34 billion which the firm borrowed from commercial banks.
The management of the firm also used this to buttress the reason why the debt burden has forced it to dismiss about five per cent of its workforce as well as resort to commercial bank loans to sustain its business in the Nigeria.
Nevertheless, the shareholders charged the management of the company to endeavour to recover the N90 billion debt owed the company by both private and public organisations which would eventually make it possible for the company to pay off the N34 billion it borrowed from commercial banks in Nigeria.