TONGAAT HULETT BUSINESS RESCUE UPDATE – ADDITIONAL FUNDING SECURED
28 Dec 2022
Post commencement finance secured from Industrial Development Corporation
Allows the group to complete the current milling season and finalise off-crop maintenance and capital expenditure
Tongaat Hulett Limited (Tongaat Hulett) today 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. Further updates will be provided as the rescues progress.