Tongaat Hulett has confirmed that its decision to enter into business rescue is voluntary. In a statement, the company says it is in financial distress.
It says despite the negative financial implications on other bodies that are dependent on it, the board says business rescue is the most responsible action.
In a statement, the Tongaat Hulett board says it is pinning its hopes on the business rescue process because it is likely to result in a better return to creditors than liquidation would.
The process will allow business rescue practitioners to investigate the affairs of the group and develop a business rescue plan.
The board also confirmed that its Botswana, Mozambique and Zimbabwe sugar operations will be exempt from the rescue process as they remain financially sound.
