Gavin Hudson CEO of Southern Africa’s biggest sugar group Tongaat Hulett, will resign with effect from February 28, the business rescue practitioners (BRPs) said.
Hudson had spearheaded efforts to recover the group’s financial position four years ago after the discovery of accounting irregularities in 2019. The plan had involved reducing the debt burden by R6.5 billion and turning around governance and operational processes.
However, these efforts were stymied by COVID-19, civil unrest and floods in KwaZulu-Natal, and the company went into business rescue proceedings in October 2022.
“The company’s core team of executives will continue to work with the BRPs,” the statement said.
Meanwhile, the BRPs said in their first report released yesterday that creditors had voted in favour of an extension of the date to publish the business rescue plan to February 28, from January 31, 2023. The extension was to progress “the complex work streams,” the BRPs said.
During the last few months, the BRPs had been engaged in securing post-commencement finance, meeting with stakeholders and investigating the affairs of the company.
The BRPs said that in December, the Industrial Development Corporation of South Africa had advanced post commencement finance to fund working capital requirements and off-crop maintenance.
“This key step in the business rescue process allows the BRPs to focus on the next phase of the business rescue proceedings,” their statement said.
BUSINESS REPORT