New deal from lenders gives Tongaat more timeTongaat Hulett’s business rescue practitioners said last week that the sugar company’s creditors have signed off on an extension of the publication of a business rescue plan to the end of March, though they had requested an additional three months.
Tongaat is the major shareholder in Hippo Valley Estates and Triangle Limited in Zimbabwe.
“We would have preferred an extension of the publication date to 30 June 2023, but can work with the shorter date,” the business rescue practitioners, Metis Strategic Advisors, said in a statement.
The creditors of the struggling sugar group had been asked to allow a third extension of its business rescue plan, which had previously been due by the end of January, then expected by the end of February.
Two key milestones that form part of the business rescue process end in June 2023, they said in a statement earlier in February, including that of clarity regarding strategic equity partners, which is expected in mid-June.
In addition, current funding arrangements include agreements for a standstill — referring to a halt of scheduled debt repayments — until the end of June, which also means that “certain transactions cannot be actioned to allow sufficient time to finalise the details of an overall restructuring”.
“The business rescue plan will outline some of the contemplated transactions, even if they can only be implemented after June 2023,” the practitioners said on Tuesday. — Fin24