SA’s largest sugar producer, Tongaat Hulett, has received an undisclosed sum from the Industrial Development Corporation (IDC) to help it complete its milling season and do maintenance.
Tongaat was place in business rescue in October after its lenders failed to give their backing to a restructuring plan.
The finance advanced by the IDC, known as post-commencement finance, is the group’s largest cash injection since it was placed into business rescue. Tongaat told News24 it is not disclosing the amount it received.
The sugar group’s business rescue practitioners described the IDC’s finance as a “meaningful step forward”. “This funding ensures that we are able to continue making payments to employees, growers and other suppliers whose livelihoods depend on Tongaat Hulett,” they said.
Trade in the group’s stock was halted in July after it failed to publish its audited annual financial statements for the year to end March, 2022. Tongaat said it could not say when the JSE suspension would be lifted. It said it would only be able to complete these financial statements after its business rescue plan has been approved.
The plan is expected to be released by the end of January, meaning trading in Tongaat’s shares will remain suspended for at least another month.
Roughly two weeks after the business rescue plan is expected to be published, a number of ex-Tongaat executives are expected to make their second court appearance on fraud charges.
SOURCE: News 24