Some analysts are of the believe that there’s still hope for the struggling sugar producer, Tongaat Hulett Ltd. The company has entered voluntary business rescue after attempts to restructure its finances failed.
The company’s lenders say they are not able to support its restructuring plan or provide any additional funding.
Tongaat Hulett has been struggling following a series of events such as the 2021 July unrest, the flooding in KwaZulu-Natal and being suspended from trading after delaying to publish its financial statements.
Shareholder value
According to financial analyst, Viv Govender they do no believe that anything can rescue the company, as the company has a substantial amount of debt.
Govender further added, “In terms of the valuation for shareholder, it’s possible but unlikely they don’t get much in terms of their investments back.”
Govender elaborates that, “In terms of it being an ongoing business. I think that it’s possible. It remains an important part of such an economy. We are talking about half a million people who depend on the company. This is by employees’ dependents as well as for instance suppliers and so on.”
Video: Tongaat Hulett Ltd. enters into business rescue due to deep financial distress
