Cape Town - Tongaat Hulett Limited (THL) says its business rescue practitioners (BRP) are working on finding resolutions, as thousands of jobs in the sugarcane sector hang in the balance.
“These are very complex circumstances and the BRPs are working hard to stabilise the situation, gather important information, meet with stakeholders, deal with critical issues, and the statutory duties required in terms of the Companies Act.
“To the extent possible and practical in the circumstances, contracts and undertakings will be respected and will be dealt with in accordance with the provisions of Chapter 6 of the Companies Act,” THL said.
The SA Canegrowers Association this week said more than 14 000 jobs were on the line after THL missed the deadline to make payment of about R400 million to growers for sugar cane delivered in September.
On Tuesday SA Canegrowers was expected to meet with the BRPs appointed in the THL matter.
SA Canegrowers chairperson Andrew Russell said: “As of November 1, 2022, THL and the business rescue practitioners have officially missed the deadline by which to make payment to growers for sugar cane delivered in September.
“This puts the livelihoods of thousands of growers and workers delivering cane to the Felixton, Amatikulu, and Maidstone mills in KwaZulu-Natal at risk.”
This included around 4 300 growers who delivered almost 600 000 tons of sugar cane to THL mills in September and were due to be paid more than R400m by the end of October, Russel said.
The non-payment also places the livelihoods of an estimated 14 642 permanent and seasonal farm workers employed by these growers at risk, Russell said.
The THL BRPs confirmed the operations of THL and Tongaat Development were in the business rescue processes under their oversight.
As part of their formal business rescue process, there was also a formal meeting of employee representatives and a meeting of creditors within 10 days of appointment, they said.
“The BRPs and company will be communicating with stakeholders in this regard.
The BRPs have dedicated people working very hard to find the best way forward for those associated with Tongaat.
“Tongaat’s leadership team is committed to working closely with the business rescue practitioners.”
Cape Times