TONGAAT HULETT BUSINESS RESCUE UPDATE: CREDITORS SUPPORT ADJOURNING THE BUSINESS RESCUE PLAN VOTING
14 June 2023
Voting on the business rescue plans of Tongaat Hulett Limited (THL) and its subsidiaries, Voermol Feeds (Voermol) and Tongaat Hulett Sugar SA (THSSA), to be postponed
The business rescue practitioners (BRPs) today confirmed that 85% of the total claims of creditors of THL (94% for Voermol and 78% for THSSA) voted regarding motions to:
- adjourn (postpone) the meeting to vote on the published business rescue plans
- allow the BRPs to amend the business rescue plans to take into account various developments
Of those creditors present and voting, 100% voted in favour of these motions. Accordingly, creditors will consider and vote on the amended business rescue plans by no later than 30 September 2023.
The BRPs commented:
The BRPs have always preferred to publish a business rescue plan containing details relating to specific transactions. Since the release of the business rescue plans, we have continued discussions with a range of parties and agreed that updating the business rescue plans with additional details in terms of the strategic equity partner process and other matters would be in the best interests of creditors before they are requested to vote. As is clear, the creditor bodies agreed with this.
The postponement is therefore a positive step, as it creates increased certainty for affected persons as it will allow for the outcome of the SEP process and the associated consequences on the claims against the company to be outlined in greater detail in an amended business rescue plan.
Engagement with the potential strategic equity partners interested in acquiring the whole of THL and/or the SA Sugar businesses and/or parts thereof will continue despite the adjournment. The postponement does not impact the operations, with the same workstreams, as set out in the currently published business rescue plans, to continue.