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- Tongaat Hulett has reached a R260 million settlement with Deloitte.
- Deloitte audited its books that generated SA's second-biggest accounting scandal after Steinhoff.
- The business rescue practitioners are also asking creditors to allow a third extension of its business rescue plan.
- For more financial news, go to the News24 Business front page.
Tongaat Hulett's business rescue practitioners said on Thursday that the sugar company had reached a R260 million settlement with former auditors Deloitte, while they also want to delay the release of the business rescue plan by another four months amid a potential equity injection.
Deloitte, which audited the books of the company that generated SA's second-biggest accounting scandal after Steinhoff, has agreed to pay the settlement for claims based on six years of audited financial reports without admission of liability, Tongaat's business rescue practitioners said.
Deloitte charged Tongaat Hulett R299 million in fees over 11 years, during which time there were major misstatements in the company's annual finances that eventually led to the collapse of the company's share price.
READ | Bad books: Tongaat shareholders call for settlement with Deloitte amid cash crunch
Deloitte itself has said it hasn't seen any evidence itself to support the criminal charges brought against its former partner who audited Tongaat Hulett.
The practitioners, Metis Strategic Advisors, are also asking creditors to allow a third extension of its business rescue plan, this time until the end of June, with the plan previously having been due by the end of January, then expected by the end of February.
READ | Deloitte finds no evidence to support criminal case against former Tongaat auditor
Two key milestones that form part of the business rescue process end in June 2023, they said in a statement, including that of clarity regarding strategic equity partners, which is expected in mid-June. In addition, current funding arrangements include agreements for a standstill - referring to a halt of scheduled debt repayments - until the end of June, which also means that "certain transactions cannot be actioned to allow sufficient time to finalise the details of an overall restructuring."
"It is important to note that the publication of a rescue plan is only one step in a business rescue process," the statement read.
"The other work streams continue regardless of when the plan is published. An extension to the publication of the plan has no material impact on the ongoing operational aspects of the company."
The company continues to operate, with the completion of the off-crop maintenance progressing well, the practitioners said, adding that the company is on track to commence the 2023/2024 sugar season, while larger business rescue plans typically take months, so delays are not unusual.
