Tongaat Hulett, gets a lifeline
Image: Supplied
The provisional liquidation application of Tongaat Hulett Limited (THL) has been withdrawn in the Durban High Court.
In a statement, the joint Business Rescue Practitioners (BRPs) of THL said the court granted them leave to withdraw the application they said they brought as a “last resort”.
The BRPs said this come after recent substantial progress between Vision and the Industrial Development Corporation (IDC) towards the implementation of the adopted Business Rescue Plan.
The statement said the IDC has agreed to extend Tongaat Hulett’s PCF facility to September 2026, providing continued liquidity to support the company's operations while implementation of the business rescue transaction proceeds.
Secondly, the IDC, Vision and THL have concluded a binding Heads of Agreement regulating the implementation of the transaction as contemplated in the adopted Business Rescue Plan. This includes arrangements relating to the refinancing of the PCF facility, the treatment of the South African Sugar Association (SASA) obligation, the concurrent creditor distribution and the conclusion of new sale agreements.
“The BRPs are accordingly satisfied that sufficient progress has been made to justify the withdrawal of the liquidation application, and for the implementation of the adopted Business Rescue Plan to proceed. The BRPs are relieved and deeply grateful that they are no longer required to pursue the liquidation application, an outcome they, and all stakeholders, have worked to avoid. ”
An earlier joint statement by Tongaat Hulett, IDC, and Vision Group said: “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 2026. It also provides a 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.”
The SA Canegrowers said it welcomed the developments, stating that for growers, workers, and communities that depend on Tongaat Hulett, this agreement averts the immediate threat of liquidation and protects jobs and livelihoods across the sugar value chain.
“This agreement is a significant milestone in securing the future of the modern South African sugar industry. With the liquidation of Tongaat Hulett off the table, we hope that its mills and refinery can now focus on operating without interruption. More than 17,500 supplying sugarcane growers rely on Tongaat,” said Higgins Mdluli, chairman of SA Canegrowers.
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