ANDREW RUSSELL: There is too much at stake for the sugar industry to let Tongaat Hulett fail

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SA will miss many opportunities if the company cannot secure the funding it needs to survive

Tongaat fields en route to Crocodile Creek. Picture: JACKIE CLAUSEN

On account of the business rescue process Tongaat Hulett lost access to its bank accounts. As a result, it was unable to pay more than R400m due to 4,300 growers at the end of October. The consequences of nonpayment would have been catastrophic. Thankfully, the payments have been made, albeit late, and an agreement has been reached on the payment of an estimated R345m that will become due at the end of November.

And then there’s the longer-term question of whether Tongaat Hulett will emerge from business rescue. The consequences of its demise are too ghastly to contemplate. The picture is bleak; there’s no sugar-coating it. Yet it would be a mistake to focus only on the bad and miss the opportunities that abound if we can all work together to help save Tongaat Hulett. Sugar industry stakeholders have collaborated over the past two years to implement the Sugarcane Value Chain Masterplan. Under the plan we are working to restructure the industry for the future.

 

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