Tongaat Hulett Secures Additional Funding From The IDC Amid Business Rescue
Tongaat Hulett Secures Additional Funding From The IDC Amid Business Rescue. Tongaat Hulett Limited announced that Industrial Development Corporation of South Africa (IDC) has advanced post commencement finance (PCF) sufficient to fund the Tongaat Hulett businesses’ working capital requirements and off-crop maintenance and capital expenditure.
The business rescue practitioners (BRPs) commented: “This is a meaningful step forward in the business rescue process as it provides the business and affected stakeholders with confidence that Tongaat Hulett can complete the current milling season, carry out necessary off-crop maintenance and capital expenditure and prepare for the start the 2023/4 season. This funding ensures that we are able to continue making payments to employees, growers and other suppliers whose livelihoods depend on Tongaat Hulett. We thank IDC for the speed of implementation and their pragmatic approach and thank all other stakeholders for their continued commitment to and support of Tongaat Hulett.”
This key step in the business rescue processes enables the BRPs to focus on the next phase of the business rescue proceedings aimed at achieving successful business rescues for the underlying Tongaat Hulett businesses. Tongaat Hulett Limited and Tongaat Hulett Development Proprietary Limited entered voluntary business rescue on the 27th of October 2022.
Tongaat Hulett’s Botswana, Mozambique and Zimbabwe sugar operations are not financially distressed and therefore will presently continue trading in the ordinary course. These three businesses are funded independently from the company and should be largely unaffected by the adverse circumstances affecting the company.
