Tongaat Hulett requests extension for business rescue plan

Embattled sugar producer, Tongaat Hulett and Voermoel Feeds have asked for an extention for the release of the sugar producer’s business rescue plan to the end of June.

The company’s business rescue practitioners (BRP) noted that the publication of a rescue plan was only but one step in the rescue process, while workstreams continue regardless of when the plan is published.

According to the BRP, there are no material impacts on on-going operational aspects of the company.

“The company continues to operate, with the completion of the off-crop maintenance progressing well,” the BRP said.

Operations are also understood to be on-track for the 2023/24 sugar season.

Delays in the release of the rescue plan have been attributed to discussions and negotiations which are on-going with stakeholders.

“As this is a complex process requiring a greater degree of detail, additional time is required to finalise the business rescue plan,” Tongaat Hulett said on Thursday afternoon.

Releasing a plan at the moment – with currently available information – means it would contain speculation and insufficient detail to allow creditors to make an informed decision.

The BRP has suggested that a detailed plan was required for stakeholders to vote on.

Creditors have until this Friday evening to vote on the extension.

As things stand, Deloitte and Touche South Africa have concluded an agreement with Tongaat Hulett in relation to claims by Tongaat Hulett against Deloitte.

Claims arose from Deloitte’s appointment as auditor to Tongaat Hulett for financial years ending March 31, 2012 to March 31, 2018.

Deloitte is set to pay Tongaat Hulett R260-million without admission of liability.

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