The majority of creditors of agriculture and agri-processing business Tongaat Hulett have approved an extension to the date of publication of a business rescue plan to January 31.
In a statement issued by the business rescue practitioners (BRPs) on November 15, it was confirmed that the company had secured the advancement of initial amounts of post commencement finance (PCF), which had facilitated payments of salaries and certain critical suppliers and/or creditors.
The PCF has been provided by the company’s lenders subject to the perfection of the general notarial bonds registered in favour of the lenders, besides other requirements.
In this regard, notice was given that the company had instituted an application to court to perfect the general notarial bonds registered in favour of the lenders. This application will be heard this week, the BRPs confirmed.
The BRPs also confirmed that they had reached an agreement with the lenders that, notwithstanding the lenders perfecting their security rights in respect of the company’s operating assets, the company may continue to access the applicable premises and continue to use the relevant assets to continue operating in the ordinary course, subject to maintaining and preserving the security of the lenders.