Plans to turn around Tongaat Hulett still on track, assure business rescue practitioners
This comes as a battle plays out on the sidelines between Robert Gumede’s Vision Consortium and losing bidder RGS Group. Executives at Vision have accused RGS of playing dirty, claiming the Mozambican company submitted a forged bank letter in a bid to buy Tongaat.
A sugarcane field belonging to the Tongaat Hulett group. Picture: tongaat.com
JOHANNESBURG - The business rescue plan to turn around troubled sugar refinery, Tongaat Hulett, is still on track despite a spat that has left some bitterness in the takeover deal.
This is the latest assurance from the company’s business rescue practitioners.
The comments come as a battle plays out on the sidelines between Robert Gumede’s Vision Consortium and losing bidder RGS Group.
Executives at Vision have accused RGS of playing dirty, claiming the Mozambican company submitted a forged bank letter in a bid to buy Tongaat.
Vision Consortium, partly owned by Gumede and Rute Moyo, are close to finalising a deal to take over the indebted Tongaat Hulett.
Once the deal is finalised, Vision will have a majority share of Tongaat in a debt-for-equity swap, with existing shareholders retaining almost 3% in shares.
In a status update report, Tongaat’s business rescue practitioners said work was being done to ensure the successful implementation of the amended business rescue plan.
This includes the preparation for the required regulatory processes.
Meanwhile, Vision has filed a criminal complaint against RGS for alleged fraud.
Vision alleges that before RGS pulled out of the race, the Mozambican firm had submitted fraudulent proof of funding, claiming to have R2 billion at its disposal for the takeover.
Executives at RGC have allegedly denied being part of the fraud, blaming it on a junior employee.
Vision has handed over a dossier of proof to police at the Sandton Police Station for investigations.