11 January 2024

98.51% voted in favour

The business rescue practitioners (BRPs) of Tongaat Hulett Limited (THL), today announced that creditors voted in favour of the Vision Parties (Vision) business rescue plan.

91.91% of accepted creditor claims exercised their right to vote. 98.51% of those present and voting voted in favour and 1.49% of those present and voting voted against.

The BRPs said:

Today finally provides some certainty to stakeholders on the way forward. This is positive news for employees, the businesses across all geographies and THL’s stakeholders. While there is still much to be done, we are celebrating the achievement of a key milestone. We would like to express our gratitude to employees, the lender group, the IDC, SASA, creditors, Vision and the various stakeholders who have walked this journey with THL during the process.

With the continued support of the employees, the suppliers, the IDC and Vision, we will work together towards achieving substantial implementation of the now approved and adopted business rescue plan as efficiently and as quickly as possible. Substantial implementation will be the new beginning for a company that has been in existence for more than 100 years and has a significant impact on the economy of KwaZulu-Natal and the country.

In the Affected Persons’ meeting, Vision confirmed its belief that THL is a leading sugar and animal feeds business with a good asset base across Southern Africa. Vision is committed to keeping the group together and has developed a strategy entailing five strategic pillars that will be implemented to create a sustainable business.

The BRPs will now proceed with the implementation of the adopted plan. THL can only exit business rescue once the plan has been substantially implemented (which could take several months) or alternatively if it is no longer financially distressed. The decision to terminate business rescue lies with the BRPs or alternatively the High Court on application.

Key features of the business rescue plan:

Key Features  Vision Plan 
Acquisition of Lender Group claims and security and the subsequent conversion into equity Acquisition of the Lender Group claims and security amounting to c.R8 billion and subsequent conversion of c.R4.1 billion of such claims into new equity in THL.


Recapitalise balance sheet

Conversion of c.R4.1 billion debt into equity.


Existing shareholders

Retain an interest of 2.7% in THL equity after the debt to equity conversion.


Distributions to Creditors: 


Secured Creditors 

Cash paid to Lender Group not disclosed.


PCF Creditors

Renegotiate a working capital facility, to be approved by IDC as PCF in a manner that will result in the extinguishment of the PCF.


South African Sugar Association (SASA) Claims

100c in the Rand (subject to declarator appeal process). 


Unsecured Creditors

A R75 million distribution, paid pro-rata to Unsecured Creditors’ respective claims.


Working capital facility (PCF) to fund THL businesses for the duration of the business rescue process and after

THL, with support from Vision, will secure working capital facilities in the form of ongoing PCF sufficient to fund the THL businesses for the duration of the business rescue process and thereafter.


Impact on employees

The Vision transactions do not currently contemplate retrenchments.



The continued trading of THL and business improvement, including ongoing employment of current employees and opportunity for new jobs to be created.