South Africa’s Top Sugar Producer Runs On as US$150 Million Lifeline Ends
Tongaat Hulett, South Africa's largest sugar producer, is still operating after its US$150 million state credit line reached its 30 September end date. Its rescuers say talks with the state lender and buyer Vision Sugar remain constructive. The post South Africa’s Top Sugar Producer Runs On as US$150 Million Lifeline Ends appeared first on The Rio Times .
South Africa's largest sugar producer, Tongaat Hulett, continues operations despite the expiration of its state credit line on September 30th. The company's rescue talks with lenders and potential buyer, Vision Sugar, remain "constructive," according to its business rescue practitioners. Tongaat Hulett, based in KwaZulu-Natal, faced an accounting scandal in 2019 and heavy debts, leading to its entry into business rescue in October 2022.
The Industrial Development Corporation (IDC) extended the emergency credit facility from R2.3 billion to R2.5 billion, with discussions ongoing on refinancing the IDC facility and settling other debts. The Mozambican group, RGS, is appealing a ruling against the rescue plan, while low-priced imports and a wage strike in August have impacted Tongaat Hulett's cane deliveries and production. The next update on the rescue talks will be provided in the IDC's monthly report.
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