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Creditors of distressed sugar producer Tongaat Hulett have voted in favour of a plan put forward by the Vision consortium, paving the way for the implementation of a business rescue plan in an expected five to six months or so.
Just over 98% of creditors voted in favour of Vision's rescue plan during a meeting on Thursday, as well as 98% as independent creditors. In order to pass, the vote required 75% of creditors, and 50% of independent creditors. The latter excludes those related to the company, such as directors. Creditors had few options, however, and a vote no would have most likely meant liquidation for the 130-year-old company.
Business rescue practitioner Trevor Murgatroyd, of Metis Strategic, said on Thursday that the approval was preliminary, which would become final after it becomes clear it does not affect the rights of shareholders.
