Business Rescue Practitioners (BRPs) of Tongaat Hulett Limited (THL) said today that they were continuing to advance the necessary steps for purposes of implementing the Adopted and Amended Business Rescue Plan, which was approved and adopted by the requisite majority of creditors on Thursday last week.
The BRPs said they were focusing on the alternative transaction in accordance with the Plan, which contemplates the sale of the company’s business and assets as a going concern, as a group, to the Vision Parties.
The asset transaction will entail the sale of the South African assets, including the South African sugar business and head office; and the shares in and claims against each of the subsidiaries in Zimbabwe, Mozambique and Botswana.
THL, Vision Sugar South Africa, Vision Investments, the Vision Parties and the Vision Principals signed the Business Sale Agreement for the South Africa assets transaction on 14 December 2024.
The purchase price payable by Vision will be settled by way of a set off of the purchase consideration for the SA assets against a portion of the Lender Group Claims.
This agreement is subject to the fulfilment of a number of suspensive conditions.
The purchase price payable by Vision Sugar to THL in respect of the South African assets will be the fair market value determined by an appointed independent valuer, plus an amount equal to the assumed liabilities.
The closing date of the South African assets transaction is the first business day of the calendar month following the month in which the last of the suspensive conditions of the sale agreement are fulfilled or waived, or such other date as agreed to in writing between the parties.
THL and the Zimbabwe Parties also signed the sale agreement for the Zimbabwean transaction on 21 December 2024, which agreement is subject to the fulfilment of a number of suspensive conditions.
The transaction contemplates the sale by THL of all of its shares held constituting 100% of the issued share capital and the claims for repayment of the shareholder loans ("Claims") in Triangle Sugar Corporation. Triangle Sugar is the holding company of THL's operations in Zimbabwe.
Meanwhile, the BRPs said the remaining sale agreements for the sale of the Botswana and Mozambique entities were advancing and were expected to be signed in the near term.
“Vision continues to cooperate fully with the BRPs and executive management of the Company to bring implementation of the Asset Transaction to a close as soon as possible. There is a core team focused on satisfying the conditions on which the Plan is contingent and ensuring the implementation of the underlying transaction,” the BRPs said.
“Finally, the BRPs confirm that the Company's Post-Commencement Financing facility with the IDC has been extended until 29 August 2025.
“It remains our view that the Company stands a reasonable prospect of being rescued, as contemplated in section 128(1)(h) of the Companies Act, in a manner that will balance the rights and interests of all Affected Persons.”
The BRPs also continue to advance the preparatory steps for the implementation of the Adopted and Amended Business Rescue Plans of both Tongaat Hulett Sugar South Africa and Voermol Feeds as approved and adopted by the requisite majority of creditors in January last year.
BUSINESS REPORT