Tongaat Hullet business rescue plan adopted
SUGAR processor, Tongaat Hulett Limited (THL), had its business rescue plan approved and adopted by creditors, saving the entity from imminent liquidation that was looming.
Last month, it was reported the company that presently remains suspended on the Johannesburg Stock Exchange (JSE), was inching its way towards liquidation as its business rescue process at the time became increasing bogged down by legal challenges.
In a statement released last week by the Vision Consortium, which is made up of entrepreneurial families led by both South African and Zimbabwean Robert Gumede and Rute Moyo, and major international businessmen Amre Youness and Nauman Khan, the consortium said there are elated with the outcome after a protracted bidding process that was mired in controversy in the run up to the latest development.
“The Vision Consortium is grateful to have had its rescue plan for THL approved and adopted by creditors.
“THL is one of the key strategic assets in the SADC region, employing some 40 000 workers and working with over 250 000 small scale cane growers as well as numerous players across the sugar cane industry, all of whom are the biggest winners with this result.
“The Vision partners are humbled by the extent of the support for the Vision rescue plan from creditors, employees and other stakeholders,” it said.
It said it conducted a deep dive due-diligence in all countries — South Africa, Zimbabwe, Botswana and Mozambique — where THL is the leading sugar company and one of the largest employers.
“Having been involved in this transaction since late 2020, we always believed that in the right hands, THL can return to being a great business.
“We have a team that has a sustainable plan to turnaround, grow and diversify the group back into relevance.
“We would like to appreciate the sterling leadership of acting chief executive officer Dan Marokane, chief financial officer Rob Aitken and their management teams and staff across all jurisdictions in keeping the business on course and ensuring firm stability for over a year of the business rescue process,” said the Vision Consortium.
It said the above stakeholders’ commitment to saving THL that was displayed during various engagements is a crucial success ingredient and is highly appreciated.
“We thank the business rescue plan team for all their professional engagement and cooperation.
“We know this has been a challenging process that they had to manage the business rescue process with all stakeholders.
“We want to recognise and acknowledge the IDC (industrial Development Corporation) for the role they have played and hopefully will continue to play in providing THL with the ‘oxygen’ it requires at this crucial time. Without them, it would have been a different story.”
It is hoped that members of the Vision Consortium will be actively supportive to the business rescue plan and management who can benefit hugely from Almoiz, who were brought into Vision as a strategic technical partner.
In line with commitment to rescue THL and place it on a path to a prosperous, sustainable and profitable future, Vision said, it shall engage and settle with SASA in line with the Justice Vahed judgment, as well as engage with the IDC on the Post-Commencement Funding on win-win terms to be agreed by all parties and in the best interests of the company and the sector.
“We are grateful to the lender group for their understanding and support of the Vision proposal and rescue plan.
“We thank the lender group for their professionalism, visionary outlook and support.
“We are confident of how we have minimised transaction execution risks and are confident we shall achieve all our goals sooner rather than later,” it said.
“There is no time to celebrate as all hands are now on deck to steer the company out of insolvency and business rescue so that we can have the business operating profitably and share trading suspension on the JSE lifted.”
The Vision Consortium looks forward to engaging with all key stakeholders including its staff members, suppliers, all industry players, THL partners, the financial supporters of THL, industry regulators and the governments in all jurisdictions.