Tongaat seeks lifeline as liquidation battle heads to court

Tongaat Hulett Limited is seeking an extension of its critical post-commencement funding (PCF) facility from the Industrial Development Corporation (IDC), alongside a ZAR200 million increase to ZAR2,5 billion, after delays in securing the funding derailed its business rescue implementation and pushed the company closer to liquidation proceedings.

The funding impasse has triggered the collapse of Tongaat’s restructuring plan, including a failed US$330,05 million debt-to-asset transaction with the Vision Group.

As a result, business rescue practitioners have applied for provisional liquidation.

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