Financially troubled sugar producer Tongaat Hulett on Thursday announced that it will be entering a voluntary business rescue process (BRP) after its board found the company to be in “financial distress”.
In a statement, the JSE-listed company – which is currently suspended from trading due to a delay in publishing its latest financials – said that its debt levels are well in excess of what it can service after business recapitalisation plans took longer than expected.
The group’s property division – Tongaat Hulett Developments (THD) – will also undergo the BRP as it is dependent on the company for funding.
However, according to the group, its Botswana, Mozambique and Zimbabwe sugar operations will be exempt from the rescue process as they remain financially sound and are not reliant on Tongaat for funding.
The business rescue practitioners will investigate the affairs of the group, consider the various options available and develop a business rescue plan for consideration by the company’s affected persons,” Tongaat said.
“The company lodged the requisite documents with the Companies and Intellectual Property Commission (CIPC) on 27 October 2022 and awaits confirmation of filing from the CIPC.”
The KwaZulu-Natal-headquartered company has faced several challenges over the last few years, including allegations of mismanagement, financial misstatements and increasing debt levels.
For a more detailed report on Hullett's business rescue visit www.moneyweb.co.za
Meanwhile, five former executives of sugar giant, Tongaat Hulett and an auditor are facing fraud charges involving around R3.5 billion.
The accused include former CEO, Peter Staude, former Chief Financial Officer, Murray Munro and three executives as well as Deloitte auditor, Gavin Kruger.
They remain out on bail.
