Tongaat Hulett’s business rescue practitioners (BRPs), the Industrial Development Corporation (IDC), and the Vision Group of companies have concluded a binding agreement that provides a pathway to preserve Tongaat Hulett’s business rescue, maintain trading operations and support implementation of the approved business rescue plan.The parties said in a statement on Wednesday the agreement will see the IDC become a significant shareholder in Vision operating companies across South Africa, Zimbabwe, Mozambique and Botswana, while extending post-commencement finance support to the end of September.The deal will provide the basis for preserving an estimated 250,000 jobs across the sugar industry value chain and for concluding the steps required for Tongaat Hulett to exit business rescue, they said.The agreement follows a period of uncertainty during which a liquidation application was filed with the high court in Durban. “The parties have chosen instead to work together to keep Tongaat Hulett operating and to protect the value it holds for its employees, growers, suppliers, lenders and the many communities across the region who depend on it,” they said.The parties have committed to work together in good faith and with urgency to bring the transaction to completion. Their shared objective is to stabilise the business, support the broader sugar value chain, and position the operations for long-term sustainability and recovery— Tongaat Hulett BRPs, Industrial Development Corporation and Vision groupThe BRPs will today take the steps necessary to withdraw the liquidation application in front of the judge.Under the agreement, the IDC will extend its post-commencement finance (PCF) support to enable Tongaat Hulett to continue trading while the transaction is implemented. The parties have also agreed to restructure the IDC’s PCF into equity at the appropriate level as part of the overall transaction framework, supporting a more sustainable capital structure on emergence from business rescue, the statement said.Vision will provide the funding required to settle and address creditor claims, including the company’s obligations to the South African Sugar Association, in support of the substantial implementation of the approved business rescue plan. The parties will conclude new sale agreements for the transfer to Vision of Tongaat Hulett’s South African operations, together with its interests in its subsidiaries in Zimbabwe, Botswana and Mozambique, according to the statement.“The parties have committed to work together in good faith and with urgency to bring the transaction to completion. Their shared objective is to stabilise the business, support the broader sugar value chain, and position the operations for long-term sustainability and recovery,” they said.Business Day