The liquidation case against Tongaat Hulett to be heard in June, and the outcome might affect the livelihoods of thousands of small cane growers in northern KwaZulu-Natal.
Image: SA Canegrowers
Vision Group, the company that won a bid to take over sugar group Tongaat Hulett Limited (THL), which is facing a liquidation hearing next month, has “initiated steps” at THL’s regional subsidiaries, “to preserve security interests over those assets” as THL’s largest creditor with R11 billion debt in THL.
In a statement where Vision countered allegations that its company Bowwood and Main No 296 had attempted to bypass any legal process for the acquisition of Tongaat Hulett Botswana’s (THB’s) shares, Vision said: “As any lender of substantial funds would be entitled to do against a borrower which is in default, prudent steps have been taken to preserve security, not to acquire such assets outside of any legal process.”
It said it was instead focused on THL’s liquidation hearing on June 17, where it will “continue to advocate for a resolution that prioritises job preservation and continued operation of the assets.”
Vision, which is led by South African billionaire Robert Gumede, and Zimbabwean businessman Rute Moyo, said the primary purpose of obtaining an Ex Parte Order (a court order derived where one party is absent) was to have an order, issued by the High Court of South Africa during 2022 in favour of the former “Lender Group”, recognised as an order within the jurisdiction of Botswana.
It said the terms of the Ex Parte Order (EPO) did not grant Bowwood rights to transfer, sell, or dispose of THB shares; it “merely provides preventative measures to preserve Bowwood’s security interest over the THB shares.”
Last Friday, Tongaat Hulett’s Business Rescue Practitioners (BRPs) said they had been successful in applying to the High Court of Botswana for a rescission hearing on the EPO, “notwithstanding opposition by Bowwood.”
Vision said these steps taken by Bowwood, with the support of Vision, were no different to that which the former Lender Group took. The so-called Lender Group comprises mainly Tongaat Hulett’s previous bank funders, and a key aspect of Vision’s successful bid in 2022 was that it took over THL’s debt owed to the Lender Group.
“Accordingly, Bowwood is exercising its lawful right to preserve its security amidst the current instability of the South African business rescue process, especially following the BRPs’ filing for THL liquidation in February 2026 at the Durban High Court,” Vision said.
Only THL South Africa is in business rescue; its sugar milling and growing operations in other countries such as Mozambique, eSwatini, and Zimbabwe, continue to trade normally.
Vision said the 2022 court order had "perfected general notarial bonds over movable assets of THL and its associated entities, which were given as security to Bowwood, and was consented to and supported by the BRPs at the time that the former Lender Group launched those proceedings."
Vision said notwithstanding the EPO and the 2022 High Court Order, Bowwood retained security over THL’s regional subsidiaries through other security arrangements and “will continue to do so regardless of the outcome of the rescission application launched by the THL Applicants.”
Vision said it was exercising these rights as a creditor of THL to ensure its security is not eroded, “a standard and normal right which is generally conferred on any secured lender.” These rights include governance rights such as board representation and the ability to call shareholder meetings, and participating in the economic rights of the shares.
“While Vision remains committed to a long-term solution for THL, it has an obligation to stamp its interests at the back of these shares in THL regional subsidiaries to ensure that its security is not eroded to the prejudice of the largest secured creditor. This action is taken specifically to protect the 250,000 livelihoods dependent on these assets from further disruption,” it said.
“Should Bowwood have sought to transfer, sell, or dispose of THB shares, Bowwood would have to obtain a further court order in any event.”
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