Africa-Press – South-Africa. The SA Canegrowers’ Association says it has written to various state ministries as well as President Cyril Ramaphosa requesting to meet about state financial intervention to ensure payments for those hit by the fallout of Tongaat Hulett’s business rescue.
The lobby group met with Tongaat’s business rescue practitioners on Wednesday, which came after a deadline to pay R401 million for sugar delivered by about 4 300 growers was missed.
Chairperson of SA Canegrowers Andrew Russell said in a statement after engaging with the business rescue practitioners, the organisation was optimistic there was an understanding of the urgency of the situation, with just under 15 000 jobs affected.
“Given the magnitude of the challenge at hand, SA Canegrowers does not believe the industry can withstand the current peril without financial assistance from government,” Russell said. Ministries that have received letters include the Department of Agriculture, Land Reform, and Rural Development and the Department of Trade, Industry and Competition.
In October, Tongaat announced that its lenders had not given a nod to its business rescue plan, with the firm appointing Metis Strategic Advisors, which is expected to continue talks with lenders – most of SA’s major financial institutions – about post-commencement financing, as well as develop a plan to rescue the business.
SA Canegrowers, which dates back to 1927 and serves as a platform for organisations in the industry, said on Tuesday around 4 300 growers who delivered almost 600 000 tons of sugarcane in September were due to receive payment at the end of October, with more than 4 000 of these small-scale growers who are especially vulnerable.
For More News And Analysis About South-Africa Follow Africa-Press
