Tongaat reaches agreement with bankers on long-term sustainability
Bankers have agreed to waive their rights to loan repayments in exchange for additional security for their loans
Embattled sugar and property development group Tongaat says it has reached an agreement with its bankers aimed at ensuring the company’s long-term sustainability. The bankers have agreed to waive their rights to loan repayments in exchange for additional security for their loans and have indicated they are willing to consider a standstill agreement. This is a spectacular fall from grace for Tongaat, which was once considered a blue-chip company and the recipient of numerous awards from the Investment Analysts Society as recently as last June. The company told shareholders on Thursday that its lenders had agreed to waive their rights arising from any breach of financial covenants evident in the group’s financial 2019 results.