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Tongaat Hulett (THL) is nearing a significant milestone in its business rescue journey, with new investors, the Vision Parties, confirming they have secured the necessary credit approval to fulfill their payment obligations to the group’s lenders. This development sets the stage for the completion of the acquisition of claims held by a consortium of South African banks and other financial institutions that had supported THL before its entry into business rescue.
The payment was originally due by March 31, 2025, but the Vision Parties, led by prominent businessman Robert Gumede, have obtained consent from the lender group to extend this deadline to the end of April. According to THL, the extension is required to finalize the agreements necessary to secure the credit facility.
In a statement released on Wednesday, the group confirmed: “Vision’s outstanding payment obligation to the Lender Group will be discharged through the aforementioned credit facility.” The Lender Group, which was owed approximately R6.9 billion when THL entered business rescue in October 2022, has now been assured that the new investors can meet their financial commitments.
The successful securing of credit approval highlights the Vision Parties’ ability to honor their obligations as outlined in the Vision Business Rescue Plan. THL emphasized that this marks a pivotal moment in the plan’s successful implementation, strengthening the Business Rescue Practitioners’ (BRPs) confidence in the continued viability of the rescue strategy.
“This credit approval reinforces both the Vision Parties’ and Lender Group’s belief that the Vision Parties can meet their payment obligations in full as per the plan,” the statement reads. “This represents a critical step forward in the long-term stability of THL and demonstrates the unwavering commitment to fulfilling all financial requirements.”
Despite facing challenges, including a number of legal obstacles from minor creditors attempting to disrupt the plan, THL remains resolute. The group added that all court applications filed against the business rescue plan have been dismissed, with costs awarded in favor of THL and the BRPs. This victory reinforces the viability of the rescue strategy and signals a fresh start for the company.
“While the journey has been challenging, we are confident that the successful implementation of the plan will pave the way for a new chapter in THL’s operations,” THL stated.
The successful turnaround of Tongaat Hulett is crucial not only for the company but also for the regional and national economies. With a significant presence in KwaZulu-Natal, Zimbabwe, Mozambique, and Botswana, THL supports over 28,000 jobs across its operations, including 2,600 direct employees and 25,500 jobs in surrounding communities. It also sources sugar from 15,000 small-scale growers.
Looking ahead to the 2025/26 sugar season, THL is fully prepared, with off-season maintenance investments of R460 million made in key facilities, including the Maidstone, Amatikulu, and Felixton mills, as well as its Durban refinery and Voermol animal feeds facility. These investments were supported by Industrial Development Corporation (IDC) post-commencement financing, which has been critical in maintaining the company’s infrastructure.
“We are ready for the upcoming season, with all operations set to open smoothly and the sugar cane deliveries from growers scheduled to begin in the coming weeks,” said the company. THL’s focus on strengthening its infrastructure ensures reliable and efficient production for the future, further stabilizing its economic impact in the region.
The successful completion of THL’s business rescue plan will be a major success story, marking the resilience of both the company and its stakeholders as they work toward a brighter, more sustainable future for the business.
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