Creditors vote to give Tongaat Hulett extension to deliver business rescue plan
The company entered voluntary business rescue last October.
Tongaat Hulett creditors have allowed for the extension of the company’s highly anticipated business rescue plan, but moved the timeframe forward until the end of March.
The sugar giant’s business rescue practitioners (BRPs) had asked for an extension on publication until the end of June, but only one month extra was granted after creditors voted on February 24.
After the company entered voluntary business rescue in October, the plan was initially expected by end November, but a first extension was granted until the end of January this year, after which it has since been extended twice more.
“We would have preferred an extension of the publication date to June, but can work with the shorter date. As previously advised, the publication of a rescue plan is only one step in a business rescue process.
“The publication of the plan has no material impact on the ongoing operational aspects of the company.
“The business rescue workstreams continue regardless of when the plan is published,” said BRP spokesperson, Heidi Geldenhuys.
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The BRPs further highlighted that the company continues to operate during the offseason, with off-crop maintenance on track to be ready for the upcoming 2023/2024 season.
Aside from Tongaat Hulett’s sugar operations, the business rescue plan will also include subsidiaries Voermol Feeds and Tongaat Hulett Developments.
In the lead up to publication of the rescue plan, the BRPs say they were working on a number of rescue processes, including looking at the sale of company assets and trying to find a strategic equity partner.
The equity partner process is underway but will only be finalised by mid-June.
“The business rescue plan will outline some of the contemplated transactions, even if they can only be implemented after June 2023.”
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