AGRICULTURE NEWS - The Tongaat Hulett group has entered into detailed arrangements with lenders for existing and additional loans to assist the ailing company’s recovery. This was according to a recent shareholder update issued by the company.
The update said that negotiations between the parties had resulted in the lenders agreeing in principle to make new ‘senior term’ loans, revolving credit, and overdraft facilities available to the company.
Tongaat Hulett would use these new loan arrangements primarily to re-finance debts already owing to existing short- and long-term creditors. The funding would also be utilised to fund the company’s general corporate and working capital requirements.
“The Term Sheet provides for timelines within which repayments must be made on the debt owing to the South African lenders and contemplates that [Tongaat Hulett] will fund these repayments out of asset disposals and/or equity capital raisings. A further announcement will be made as soon as the full agreements have been signed,” the update said.
Farmer’s Weekly previously reported that as part of its strategic review and turnaround process, Tongaat Hulett planned to reduce its sugar cane farming activities in South Africa.
Read the full article here on the Caxton publication, Farmer's Weekly.
