Tongaat Hulett Limited is seeking an extension and increase of its post-commencement funding facility from the Industrial Development Corporation, after delays in securing the funding derailed its business rescue implementation.
This funding impasse has led to the collapse of Tongaat鈥檚 restructuring plan, including a US$330.05 million debt-to-asset transaction, and has pushed the company closer to liquidation proceedings. Business rescue practitioners have applied for provisional liquidation, with the High Court in South Africa expected to hear opposing applications this week. The failure to implement the rescue plan was due to Tongaat鈥檚 inability to generate sufficient revenue over nine months to December 2025, which undermined its ability to refinance the IDC facility.
This was exacerbated by increased competition from imported sugar into South Africa. Despite the financial strain, liquidity management has remained relatively stable. RGS Group Holdings Limited, a former rival bidder, has opposed the liquidation application, stating it has secured a fresh term sheet with the African Export-Import Bank for a US$280 million facility.
The liquidation hearing is set for Thursday at the Durban High Court.
This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
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