Business Rescue puts Tongaat Hulett back on track

TONGAAT Hulett is unquestionably one of South Africa's most vital sugar producers. Tongaat Hulett continues to operate effectively and is firmly on the road to recovery in anticipation of the successful implementation of its business rescue plan.

- DAVE HOWELLS

Business rescue is, by nature, a complex process that requires a careful balancing of competing interests while providing a lifeline to companies teetering on the brink of collapse. In the case of Tongaat Hulett, this lifeline has not only sustained the business and those who rely on it but also positioned the company to play a crucial role in securing the long-term sustainability of the sugar industry.

This achievement is even more remarkable considering the company’s dire situation just three years ago, when it lost R12 billion in value due to alleged accounting fraud committed by former senior executives.

In consequence of the result-ant financial distress occasioned by this alleged malfeasance, Tongaat Hulett entered business rescue in October 2022. The immensity of the challenge it then faced cannot be overstated: avoiding liquidation, stabilising operations, and, most importantly, protecting the thousands whose livelihood is and remains tied to its sugar and animal feed businesses.

While civil and criminal proceedings against the former executives continue to progress slowly, we are pleased that the business rescue process is now nearing its conclusion. This is despite ongoing efforts by third parties to derail the process through vexatious and unsuccessful court challenges, which have cost money and diverted focus from the core objective: saving Tongaat Hulett’s operations.

The success achieved thus far is the result of collaboration between all stakeholders who are, and remain committed to developing and executing a viable business rescue plan that ensures long-term recovery.