Tongaat's lenders have not approved its restructuring plan, and the sugar producer has appointed Metis Strategic Advisors as it enters bankruptcy protection.
"The South African lender group has informed the company that in all of the circumstances of the restructuring plan, they are unable to support the restructuring plan, or provide the additional funding required," Tongaat said. The firm is battling to recover from an accounting scandal, SA’s second biggest after Steinhoff, while also trying to whittle down what it previously said was a R7.6 billion net debt pile. It has been hit with a series of adverse events, including a downturn in the property market in KwaZulu-Natal that hobbled plans to sell property, civil unrest in that province which led to destruction of cane fields, and more recently flooding in the province.
A PwC investigation identified 10 executives, including former CEO Peter Staude, who were allegedly involved in profit inflation. It also found that there was a culture of deference within Tongaat that led to employees not questioning accounting practices.
_Business probably another BEE success story right here
_Business Why have we pay sugar taxes on every item that contains sugar? If this is another way to get money for the Government then this has become a scandal to the sugar industry. We should ask for the sugar tax to be banned.
_Business Yet another auditor firm not doing their jobs. Or let us say 'cheating' the books.
_Business Cleaver way of disinvestment
_Business The sugar brand we grew up consuming madoda!