Tongaat Hulett Business Rescue Funding Secured To End June 2023
Tongaat Hulett Business Rescue Funding Secured To End June 2023. Tongaat Hulett Limited (THL) has announced that it has obtained an extension of the period of the PCF until the end of June 2023. This is anticipated to be sufficient for working capital purposes and provide comfort to employees and suppliers that payments should be made going forward.
In view of the confirmation of funding until June 2023, a majority of creditors has agreed to allow additional time until 31 May 2023 or the further development of a more detailed business rescue plan. This will allow the plan to contain information on a transaction and/or structure that the creditors will be asked to vote on. Discussions and negotiations are ongoing with various stakeholders. The current strategic equity partner process is also expected to result in final binding offers by 26 May 2023.
Tongaat Hulett is a leading agri-business in sugar, ethanol, animal feeds and cattle, with a significant asset base and footprint in Southern Africa. The company’s ongoing agriculture activities mean it has a substantial land portfolio within the primary growth corridors of KwaZulu-Natal, with strong policy support for conversion at the appropriate time.
Partnering with key stakeholders, the company created mutually beneficial relationships for its shareholders, governments, private farmers and their representative bodies, communities, employees, as well as the people impacted by the company’s operations. Tongaat Hulett was formed through a merger between the Hulett Corporation Limited and the Tongaat Group Limited, with both their operations dating back to the 1800s.
