Embattled sugar producer Tongaat Hulett is seeking a R4bn cash injection from shareholders as it desperately seeks to reduce a mountain of debt that is equivalent to just more than three-quarters of its asset base. 

The debt is a burden on the company; of the R1.3bn net cash generated from operating activities for the latest full year, R1.1bn was used for servicing debt. At current debt levels, for every R1 generated from operating cash flow, 80c goes to finance costs.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now