Important Milestone Achieved in Tongaat Hulett’s Business Rescue
Durban – The Vision Parties have informed the Business Rescue Practitioners (BRPs) of Tongaat Hulett Limited (THL) that they have obtained credit approval to cover the remaining payment obligations owed to the Lender Group.
“This will allow the Vision Parties to finalize their acquisition of the claims held by the Consortium of Lenders who had provided funding to THL prior to its entry into business rescue,” THL stated in a declaration issued on Wednesday, (2 April 2025), which was shared with The Bulrushes.
Vision’s remaining payment due to the Lender Group will be settled using the credit facility.
“The credit approval secured by the Vision Parties further substantiates both the Lender Group and Vision Parties’ earlier claims that the Vision Parties are positioned to meet all their payment obligations to the Lender Group as stipulated in the Vision Business Rescue Plan (the Plan),” the statement noted.
“The Vision Parties have notified the BRPs that they have sought and received the Lender Group’s approval to extend the deadline for the payment of the remaining balance of the final purchase price from 31 March 2025 to 30 April 2025.
“This extension is necessary to facilitate the drafting and signing of the vital agreements governing the credit approval.
“This milestone is crucial for the successful execution of the Plan, reinforcing the BRPs’ belief that the Plan is achievable.”
THL acknowledged that, alongside the BRPs, they recognize the challenging journey this process has entailed for everyone involved.
“The rescue of THL has, in part, been complicated by various baseless court actions initiated by minor creditors attempting to obstruct the successful implementation of the Plan,” the statement explained.
“Since the Plan’s approval, all legal motions presented in the High Court have been dismissed, with costs awarded in favor of THL and the BRPs.
“Despite these challenges, the BRPs express their gratitude to all stakeholders who have remained steadfast in pursuit of a sustainable outcome that protects the future of the business, its employees, growers, suppliers, and local communities.”
THL emphasized that the successful implementation of the plan will mark a new chapter for the business, which has a significant economic presence in KwaZulu-Natal, Zimbabwe, Mozambique, and Botswana.
“The continued existence of THL is vital for both regional and national economies, particularly as the business employs 2,600 people in KwaZulu-Natal alone, supports 25,500 jobs in nearby rural areas, and sources sugar from 15,000 small-scale growers,” the statement concluded.