SA’s sugarcane growers have established a group aiming to secure funding to keep troubled industry giant Tongaat Hulett’s mills and refinery operational and avert its liquidation.
The announcement comes just over a month after the state Industrial Development Corporation (IDC) committed a further R200m to prop up Tongaat Hulett, which has been fighting for survival after going into business rescue in 2022 after accounting irregularities, financial misstatements and governance failures.
The IDC’s move led to the Durban High Court postponing the business rescuers’ liquidation application to allow for a long-term solution.
The new group, GrowerCo, said on Thursday its proposal is built around the long-term sustainability of Tongaat Hulett and includes small- and large-scale growers as equity partners, in contrast to an extractive private equity model.
Read the full story in Business Day.
