Tongaat Hulett delays release of lifeline plan by two weeks
Following the delay of the release of the plan, the company announced changes to the audit and compliance committee, notably the resignation of Linda de Beer.
Tongaat Hulett has delayed the release of its capital restructuring plan by two weeks which was originally planned to be made available to shareholders at the end of September.
The plan, which hopes to improve liquidity levels, reduce debt to sustainable levels and provide clarity on a way forward for stakeholders, is expected to be shared on October 14.
The sugar producer’s market value took an almost 90% dive over a three-year period after it disclosed overstating assets by up to R4.5-billion in its 2018 financials.
Several executives were arrested in February this year.
Tongaat Hulett was unable to release its provisional financial results for the financial year ended March 2022 by June, as required by the Johannesburg Stock Exchange (JSE).
The company applied to the JSE to have trading of shares voluntarily suspended in July, a move to protect shareholders.
This suspension was attributed to the board and auditor needing more certainty around debt referencing and balance sheet restructuring.
Following the delay of the release of the plan, the company announced changes to the audit and compliance committee, notably the resignation of Linda de Beer.
She resigned owing to ‘increasing demands on her time as chair of the public oversight board, based in Spain’.
De Beer was replaced by Louisa Stephens, who took up the position of acting chair of the audit and compliance committee on October 1. The board is in the process of identifying a suitable replacement for Stephens.
Efforts continue to submit a capital restructuring plan to reduce the company’s excess debt with the hope of ensuring its longer-term sustainability.
“The final restructuring plan will be based on work to assess a wide array of options for the optimal future of the business. It is important to note that no final decisions have been made at this time,” company CEO Gavin Hudson said.
Meanwhile, seven former Tongaat Hulett executives made their first appearance in the Durban High Court in September. The accused include former CEO Peter Straude, chief financial officer Murray Munro, directors Rory Wilkinson, Michael Deighton, legal executive Kamasagrie Singh, finance executive Samantha Shukla and Deloitte and Touche auditor, Gavin Kruger.
They face charges of fraud which amount to some R3.5-billion, including charges of the contravention of the Financial Markets Act, Companies Act and Prevention of Organised Crime Act.
Bail was set at R30 000 each, with the case adjourned for February 17, 2023.
Tongaat Hulett currently faces a R6.3-billion debt crisis and is one of the North Coast’s largest employers. A deal to underwrite the company’s R4-billion rights issue (at the time) has since fallen through.
- Tongaat Hulett outlines new restructuring plans
- Mauritius company aims to underwrite Tongaat Hulett’s R4-bn right issue
- Tongaat Hulett accepts R4bn rights offer
- Tongaat Hulett goes after former executives in R450-million civil claim
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