Two Tongaat Hulett operations enter business rescue
Two of Tongaat Hulett's operations are going into business rescue.
The company says Tongaat Hulett Limited and Tongaat Hulett Development Proprietary will go ahead with the voluntary process.
It says the move is aimed at protecting jobs, businesses, creditors and other stakeholders. It's stressed that the company is not being liquidated.
Tongaat Hulett says its Botswana, Mozambique and Zimbabwe operations are not entering business rescue.
“Although this is not the outcome we were hoping for, the start of business rescue is not the end for Tongaat Hulett’s South African operations," says Tongaat CEO Gavin Hudson.
"Business rescue provides a legal framework that allows the business rescue practitioners to work with key stakeholders to find optimal solutions to our financial difficulties. Tongaat has a proud 130-year legacy and is a significant player in agriculture in South Africa.
"We have dedicated people working very hard to find the best way forward, and the leadership team is committed to working closely with the business rescue practitioners to ensure a successful outcome to the restructuring of the company that protects those associated with Tongaat.”
