daniel chigunweBusinessman Robert Gumede’s Vision consortium’s plan to save ailing sugar group Tongaat has been approved by creditors, ending the drawn-out business rescue process which has been described as “challenging” by one of the BRP practitioners.
Vision, which includes investors from UAE and Mauritius, will take over the business after buying Tongaat’s R8bn debt through a partial debt-for-equity swap arrangement with plans to settle it in cash and equity.
“The process has been difficult and challenging. Certainly for us as business rescue practitioners (it) has been a milestone,” said Trevor Murgatroyd from Metis Strategic Advisors.
He said the approval and adoption of the plan was not the end of the road.
“There’s a lot of hard work ahead, and no doubt further challenges. With the continued support of employees, suppliers, the IDC (Industrial Development Corporation) and Vision, we will work together to achieve substantial implementation of the now approved and adopted business rescue plan as efficiently and as quickly as possible.”
The IDC has provided R2,3bn to the operations of Tongaat since late 2022.
Murgatroyd said: “Substantial implementation will be a new beginning for a company that has been in existence for more than 100 years and has a substantial impact on the economy of KZN and South Africa.”
About 25 000 people, mostly in KwaZulu-Natal, rely on Tongaat for their livelihoods. The company also has operations in Botswana, Mozambique and Zimbabwe.
In its plan, Vision said Tongaat would remain listed and that there was an opportunity for new jobs to be created as the business grew under its leadership. — TimesLIVE.
Bongani Ndlovu
Online Reporter