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Tongaat Hulett’s business rescue practitioners have secured monies to pay all salaries at the end of November following the cane sugar refinery company being placed under voluntary business rescue.

While this is encouraging news, UASA remains deeply concerned about the sugar producer’s financial state. The company needs R1.5 billion to service roughly R6.3 billion in debt and to continue its sugar milling season. However, after advancing R600 million, lenders now want this repaid.

Last month, Tongaat Hulett’s board approved a restructuring plan, including:

·       Disposing of its non-South African operations

·       Securing investment for its South African business

·       Introducing a five-year debt instrument that would be repaid through land disposals

·       Recouping money related to its accounting scandal

Unfortunately, the South African lender informed Tongaat that it would not support or provide additional funding for the restructuring plan.

UASA is deeply disappointed with the former CEO and executives of the company. They were allegedly involved in fraud that left the company on the brink of bankruptcy and risked the livelihood of the employees and cane growers. It is unclear whether the company also secured funding for employees’ December salaries.

UASA encourages its members at Tongaat not to lose trust in their management with the assistance of the business rescue practitioners as they work hard to secure funding and restore operations in the company. 

Issued by UASA Spokesperson Abigail Moyo