Africa-Press – Namibia. Philippa Larkin
TROUBLED Tongaat Hulett, the sugar and property group, has announced it has entered business rescue due to its snowballing debt burden, and that it has been denied additional funding.
However, it said its other operations would continue to trade uninterrupted.
Business rescue is a legal process aimed at facilitating the rehabilitation of a financially distressed company.
Tongaat sits with a N$6,6 billion debt burden.
It said in a statement that its company’s debt levels remained well in excess of what could be serviced, that delays experienced in the recapitalisation had worsened the situation, and that a debt restructuring plan to address both the excess debt and a N$1,5 billion shortfall in working capital facilities, was approved by the Tongaat Hulett board of directors and submitted for consideration to the relevant stakeholders.
Tongaat Hulett’s Botswana, Mozambique and Zimbabwe sugar operations were not financially distressed. – IOL News
However, it said its other operations would continue to trade uninterrupted.
Business rescue is a legal process aimed at facilitating the rehabilitation of a financially distressed company.
Tongaat sits with a N$6,6 billion debt burden.
It said in a statement that its company’s debt levels remained well in excess of what could be serviced, that delays experienced in the recapitalisation had worsened the situation, and that a debt restructuring plan to address both the excess debt and a N$1,5 billion shortfall in working capital facilities, was approved by the Tongaat Hulett board of directors and submitted for consideration to the relevant stakeholders.
Tongaat Hulett’s Botswana, Mozambique and Zimbabwe sugar operations were not financially distressed.
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