JOHANNESBURG - Troubled sugar producer, Tongaat Hulett, has landed itself a sweet deal after the companys creditors finally approved its business rescue plan.
A vote was held on Thursday, with the plan scoring an overwhelming majority in its favour.
Vision Consortium, linked to business mogul and African National Congress funder Robert Gumede, has now acquired the distressed sugar giant.
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Two proposals were initially on the table, with Vision Consortium and Mozambican company RGS Group vying for control of Tongaat Hulett.
But RGS pulled out of the race earlier this week, making it a one-horse race for the company thats been in business rescue since 2022.
If the plan by Vision Consortium failed to pass, then the indebted company may have been at risk of liquidation.
The consortium of companies will now have a majority share of Tongaat in a debt-for-equity swap, with existing shareholders retaining almost 3% in shares.
This means Tongaats balance sheet will be about R4 billion healthier.
With all the pieces in place, Tongaat will keep its doors open, saving thousands of jobs in KZN.
