- Tongaat Hulett Limited postpones voting on business rescue plan.
- Creditors overwhelmingly support motions to adjourn the meeting and amend the plans.
- Amended business rescue plans to be considered and voted on by creditors by September 30, 2023.
Tongaat Hulett Limited has announced the postponement of the voting process for its business rescue plan. The decision was reached after a meeting of creditors convened on June 14, 2023, to discuss critical motions related to the company’s business rescue efforts.
The business rescue plans in question pertain to Tongaat Hulett and its wholly-owned subsidiaries, Tongaat Hulett Sugar South Africa (Pty) Limited and Voermol Feeds (Pty) Limited. All three companies are currently undergoing the business rescue process, seeking to address the challenges they face.
During the meeting, creditors were presented with two key motions for voting. The first motion proposed the adjournment, or postponement, of the meeting to allow sufficient time to vote on the published business rescue plans. The second motion sought approval for the business rescue practitioners (BRPs) to amend the existing plans to account for various developments.
Remarkably, an overwhelming majority of creditors voted in favor of both motions. Among them, 85% of the total claims of creditors for Tongaat Hulett, 94% for Voermol, and 78% for Tongaat Hulett Sugar showed support for the proposed adjournment and amendments. This robust creditor backing indicates the stakeholders’ confidence in the ongoing business rescue efforts.
As a result of the favorable voting outcome, the amended business rescue plans for Tongaat Hulett, Tongaat Hulett Sugar, and Voermol will now be presented for consideration and voting by the creditors. The revised plans are expected to undergo review and voting no later than September 30, 2023.
The decision to postpone the voting process provides the business rescue practitioners with additional time to refine and adapt the plans based on recent developments. By incorporating these changes, the BRPs aim to ensure the amended plans remain relevant and effective in addressing the Companies’ current challenges.