Embattled sugar producer Tongaat Hulett says it will miss the JSE's deadline for releasing its results to end-March by about two weeks, as it battles to renegotiate with lenders after missing its SA debt reduction target.
The group said on Friday negotiations with lenders are advanced, but not finalised, and it would be unable to publish financial results by the end of June. They are expected to be released on July 13.
Tongaat said in April that debt reduction transaction agreements totalling R6.56bn had been signed as of the end of March, which falls short of the R8.1bn required.
This put the group at risk of defaulting, with its shares crashing 22.8% on that news.
The company, once one of the country’s most recognisable blue-chip stocks, has seen its share price battered by allegations of irregular accounting practices.
Tongaat has been implementing a turnaround strategy that involves cutting debt through selling assets, including the R5.26bn sale of its starch business to Barloworld.
CEO Gavin Hudson has been trying to steady the ship since taking over from Peter Staude in February 2019. Staude and other former executives are accused of being complicit in the mismanagement of the company, after a PwC report sought to uncover the root causes of problems besetting the company.
In afternoon trade on Friday, Tongaat’s shares were up 4.06% to R7.69, on track to break a seven-session losing streak. The group's shares have still lost a quarter of their value since April's announcement, and about 93% of their value over the past three years.
Correction: June 25 2021
An earlier version of this article incorrectly said Tongaat Hulett's results were delayed by over a month, when it was by about two weeks.
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