KOBUS LAUBSCHER: Suddenly Tongaat’s future looks sweeter
Shareholders and creditors have been offered an option that seems more palatable than what Vision and the business rescue practitioners had in mind
There is light at the end of the tunnel in the Tongaat Hulett saga, following a major development for the beleaguered sugar producer. A significant lifeline that could save the company from potential liquidation has been presented to the business rescue practitioners (BRPs), offering a more favourable outcome for both shareholders and creditors.
An interested party has proposed that an R8bn capital injection be used to fully settle the claims of creditors, including the settlement of 100% of unsecured creditors’ claims and about R550m to settle the South African Sugar Association’s statutory claim against it for outstanding levies. A further allocation of 10% of the share capital is to remain in the hands of the current shareholders, which would represent four times the value offered by the Vision consortium...
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