Abandoning core sugar business killed off Tongaat Hulett

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Abandoning core sugar business killed off Tongaat Hulett - Departing from its core business, and having its fingers in too many pies, is what crippled Tongaat Hulett and ultimately left it open to massive fraud

kept its focus on its core sugar business, it might not be facing collapse, threatening thousands of jobs.

The fate of the biggest producer in South Africa’s R18-billion sugar industry now lies in the hands of business rescue practitioners after it amassed a crippling R1.5-billion debt which it cannot pay back. In a statement last month, the struggling company said its debt levels were well in excess of what could be serviced and delays in its recapitalisation had worsened the situation.

“While the company has interest from both existing shareholders and potential new equity investors to support the recapitalisation and retain our existing operating footprint, no one has been able to provide the total funds required within the time needed to do so,” it said.Subscribe to the M&G today for just R30 for the first three months* to gain access to this story and all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

 

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