New deal from lenders gives Tongaat more time
The sugar producer’s loss worsened as it grappled with issues including hyperinflation in Zimbabwe, but it says its turnaround is on track
SA’s biggest sugar producer, Tongaat Hulett, which is scrambling to keep its turnaround on track following the fallout of an accounting scandal two years ago, has negotiated a new deal with lenders to avoid a default.
The embattled group, valued at R1bn on the JSE, needed to reduce debt by R8.1bn by the end of March, but it has asked lenders to push back the deadline by six months. It cited production difficulties in SA, hyperinflation in Zimbabwe and problems in getting asset sales over the line during a pandemic...