Tongaat creditors approve business rescue plan
Tongaat Hulett creditors yesterday voted almost unanimously in favour of the rescue plan for the company's property arm, which is to be wound down.
With 92% of creditors voting, 99.8% voted in favour, the business rescue practitioners said.
News24 reports that the plan required at least 75% support of those voting, with secured creditors, in aggregate, expected to receive distributions of around 7c to the rand – though the practitioners had said this is compared to 2.5c forecast if the company went into liquidation.
Tongaat's lenders had claims totalling R7.7bn against Tongaat Hulett Developments, which managed and developed Tongaat's property interests.
The property arm has provided guarantees for group-level debt since 2007, meaning it is liable for Tongaat's debt as a whole.
The sugar group had entered into business rescue in October and the property arm is just the first part of the business to publish its plan, which entails a structured wind-down of the company, its operations and the sale of its property assets.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
