Tongaat Hulett Troubles

Minister Tau reveals R2 billion in IDC funding already provided to stabilise Tongaat Hulett​


Minister of Trade and Industry, Parks Tau, has revealed that the Industrial Development Corporation (IDC) has provided over R2 billion in support to Tongaat Hulett as the troubled sugar producer struggles with significant financial challenges.

Tau was responding to a parliamentary question from Umkhonto weSizwe Party (MK Party) Member of Parliament, David Sikhosana, who asked the minister about the government’s interventions to prevent a major collapse of the sugar cane industry, its value chain, and the potentially devastating loss of hundreds of thousands of jobs.
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iol.co.za

Minister Tau reveals R2 billion in IDC funding already provided to stabilise Tongaat Hulett

Minister Parks Tau has revealed that the Industrial Development Corporation has provided over R2 billion into Tongaat Hulett, aiming to avert a collapse of the sugar cane industry and protect thousands of jobs following significant financial challenges.
iol.co.za iol.co.za
 
Genuine question...why won't gov waive the TH outstanding sugar tax bill if they are so concerned with saving jobs? Think it's around 500bar?

I might be barking up the wrong tree here... have been trying to ignore anything TH since I took a small bath on their shares when everything went tits-up
 
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Binary_Bark said:

Minister Tau reveals R2 billion in IDC funding already provided to stabilise Tongaat Hulett​




iol.co.za

Minister Tau reveals R2 billion in IDC funding already provided to stabilise Tongaat Hulett

Minister Parks Tau has revealed that the Industrial Development Corporation has provided over R2 billion into Tongaat Hulett, aiming to avert a collapse of the sugar cane industry and protect thousands of jobs following significant financial challenges.
iol.co.za iol.co.za
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3 2 1. All that money disappeared already????

Joh.
 
SauRoNZA said:
Explains why the Hullets' bag of sugar I bought accidentally is just one big lump.

Clearly, moisture got in there somewhere along the line.
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That's moisture and maybe issues in the conditioning and packing. Can be a very complicated answer.
KulQkumba said:
Genuine question...why won't the government waive the TH outstanding sugar tax bill if they are so concerned with saving jobs? Think it's around 500bar?

I might be barking up the wrong tree here... have been trying to ignore anything TH since I took a small bath on their shares when everything went tits-up
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It's a bit more than just that; TH owes SASA a ton of money, investor fraud, overestimation of profits, etc.
It's a bit broader than just a bailout. There is so much money required; remember TH does not just operate in SA and other subsidiaries (the few left).
 
Binary_Bark said:
That's moisture and maybe issues in the conditioning and packing. Can be a very complicated answer.

It's a bit more than just that; TH owes SASA a ton of money, investor fraud, overestimation of profits, etc.
It's a bit broader than just a bailout. There is so much money required; remember TH does not just operate in SA and other subsidiaries (the few left).
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Where do you sit in this mess Binary?
Do you have any income at all now?
 
gogga_ said:
Where do you sit in this mess Binary?
Do you have any income at all now?
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Well, not really in trouble; another major sugar company is now the main client. Not employed by TH permanently any longer. It's now consulting in mechanical engineering for different sugar producers and a few backend-to-frontend producers
 
Binary_Bark said:
Well, not really in trouble; another major sugar company is now the main client. Not employed by TH permanently any longer. It's now consulting in mechanical engineering for different sugar producers and a few backend-to-frontend producers
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Ok great. Stability not there anymore tho cause anything can change quickly.

I wish you the best. You seem rock solid and know your stuff. I enjoy reading posts from knowledgeable people like you. That's how I learn 👍😎
 

Drive to save Tongaat Hulett​


With less than a month before the fate of Tongaat Hulett is argued in the Durban High Court, key stakeholders have intensified efforts to save KZN’s sugar giant, reports The Witness.

The application to liquidate the sugar producer, brought by Tongaat Hulett’s Business Rescue Practitioners (BRPs), is scheduled to be heard on April 16 and 17.

The Department of Trade, Industry and Competition (DTIC), which has so far secured R2b towards saving Tongaat Hulett, is opposing the liquidation application, as is the Industrial Development Corporation (IDC), which has also invested more than R2b into the company.
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www.citizen.co.za

Drive to save Tongaat Hulett - LNN - Network News

Stakeholders warn of major disruptions to KZN’s sugar sector and thousands of jobs ahead of Tongaat Hulett’s liquidation hearing in April.
www.citizen.co.za www.citizen.co.za
 

Who will save sugar industry giant Tongaat-Hulett?​


Insolvency practitioners and their lawyers are the hyenas of the economic system that our laws attempt to regulate.

One does not have to like their occasional cackle or bloody jaws; they are an important part of the ecosystem.

But, to extend the animal metaphor, if they collude with lions to corral their prey and feast not upon the sick and weak, but cut off the escape of the viable, they step outside their assigned role and the professional deference it enjoys.

The business rescue of Tongaat-Hulett Limited (THL) has arguably been just such a bloody charade, implicating both the Business Rescue Practitioners (BRPs) and Vision Investments 155, the consortium that, despite the failure of its business rescue plan, still wants to ingest THL.
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www.dailymaverick.co.za

Who will save Tongaat-Hulett?

Court showdown looms in the potential liquidation of KwaZulu-Natal’s rural anchor company Tongaat-Hulett.…
www.dailymaverick.co.za www.dailymaverick.co.za
 

Durban High Court to decide fate of Tongaat Hulett amid liquidation threat​


A legal showdown over the future of Tongaat Hulett will play out in the Durban High Court on Thursday.

The embattled sugar giant faces possible liquidation, as government and creditors push back against the collapse, arguing the company can still be rescued.

Tongaat Hulett entered business rescue in 2022 after an accounting scandal and a mountain of debt.
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www.ecr.co.za

Durban High Court to decide fate of Tongaat Hulett amid liquidation threat

A legal showdown over the future of Tongaat Hulett will play out in the Durban High Court on Thursday.
www.ecr.co.za www.ecr.co.za
 

Tongaat Hulett gets R2.5bn lifeline as court weighs rescue extension​


Tongaat Hulett has secured a possible temporary funding lifeline.
This emerged on Thursday in the Durban High Court, where the future of the sugar giant is in the spotlight.
Judge Rithy Singh will now decide whether the troubled sugar producer should be liquidated or given more time to be rescued.
All parties are attending the two-day proceedings at the Durban High Court.
Court weighs liquidation versus business rescue extension
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www.ecr.co.za

Tongaat Hulett gets R2.5bn lifeline as court weighs rescue extension

Tongaat Hulett secures R2.5bn lifeline as court weighs liquidation or rescue, with creditors opposing delays amid uncertainty.
www.ecr.co.za www.ecr.co.za
 
Speaking to Farmer’s Weekly, Dr Thomas Funke, CEO of SA Canegrowers, said the agreement between the Industrial Development Corporation, the Vision Group, and business rescue practitioners (BRPs) provides critical short-term stability for sugar cane growers who depend on THL for milling.

The Vision Group is a consortium of investors and financiers that emerged as the main bidder to rescue and acquire THL during its business rescue process.
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A group of large-scale sugar growers is looking to save Tongaat Hulett, with the iconic company set for a liquidation hearing less than one month away.

Tongaat’s history dates back to 1892, and it grew into one of the nation’s primary sugar producers, supporting thousands of jobs in KwaZulu-Natal.

Despite its significant history, the company was placed in business rescue in October 2022 after an accounting scandal under its former management.

Although it received funding from the Industrial Development Corporation and the Vision Consortium, the parties would disagree over further funding arrangements.
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businesstech.co.za

Plan to save historic 134-year-old company in South Africa from liquidation

A group of sugar growers are looking to save Tongaat Hulett from liquidation, with thousands of jobs on the line.
businesstech.co.za businesstech.co.za
 

Tongaat Hulett’s fate to be decided at liquidation hearing​


Next week could be D-Day for the commercial survival of sugar giant Tongaat Hulett. Arguments for and against its provisional liquidation will be presented in the Durban High Court on Tuesday and Wednesday.

The SA Canegrowers Association, which represents 27 000 small-scale growers and 1 100 large-scale commercial growers, has painted a dire picture should the company be liquidated.

“If Tongaat Hulett enters unfunded liquidation, it is not only the operations [the mills] which will cease to operate; growers will have nowhere to supply their cane, potentially excluding as much as 4.6 million tonnes of raw cane from the local value chain every year,” said the association’s chair, Higgins Mdluli.
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www.moneyweb.co.za

Tongaat Hulett’s fate to be decided at liquidation hearing

Stakeholders are deeply divided over whether the company can still be saved.
www.moneyweb.co.za www.moneyweb.co.za
 
WaxLyrical said:
Could this be related to sugar cut backs and sugar tax?
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definitely, between government allowing in cheap unregulated sugar, and the tax being added to it, "for our own good" of course, the industry was always going to take a hit, Companies like Coke have pushed their prices up and have also dropped sugar for artificial sweeteners as well, further damaging the sugar industry as a whole. If anything, the management of these companies can be blamed for failing to predict the outcome and reacting far too late to stop the collapse.
 
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