TONGAAT HULETT BUSINESS RESCUE UPDATE
30 January 2023
Business rescue progressing well
IDC post-commencement finance secured in December 2022 aimed at completion of the current season and off-crop maintenance
Business rescue plan publication date extension required to finalise complex work streams
CEO Gavin Hudson to exit the group at end of February
Tongaat Hulett Limited (THL), Tongaat Hulett Developments, Tongaat Hulett Sugar South Africa and Voermol Feeds, today announced that the required majority of creditors have voted in favour of an extension of the date for publication of the business rescue plan from 31 January 2023 to 28 February 2023. The extension was requested to allow further time to progress the complex work streams.
During the last few months, the business rescue practitioners (BRPs) have been engaged in securing post-commencement finance for the company, meeting with affected persons and other stakeholders and investigating the affairs of the company, which are very complex.
The BRPs confirmed in December 2022 that Industrial Development Corporation of South Africa (IDC) has advanced post commencement finance to fund the working capital requirements and off-crop maintenance. This key step in the business rescue process allows the BRPs to focus on the next phase of the business rescue proceedings aimed at achieving successful business rescues for THL and its underlying businesses.
The group also announced that current CEO, Gavin Hudson, has tendered his resignation with effect from 28 February 2023. His core team of executives will continue to work with the BRPs.
Hudson spearheaded efforts to recover the group four years ago following the discovery of accounting irregularities in 2019. This involved reducing the group’s debt burden by R6.5 billion and turning around governance and operational processes. Unfortunately, these turnaround efforts were hampered by COVID-19, civil unrest and floods in KwaZulu-Natal and the Company commenced business rescue proceedings in October 2022.
The BRPs and remaining board members thank Hudson for his contribution and wish him well in his future endeavours.