The High Court of South Africa in Durban is set to hear an application on Friday for the provisional liquidation of Tongaat Hulett, marking a critical moment for one of the country’s oldest sugar producers.
The application has been brought by the company’s business rescue practitioners. Tongaat Hulett was placed under business rescue in 2022 amid mounting financial difficulties.
Since then, the 134-year-old group has seen its share value decline by an estimated R12 billion.
Although creditors approved a rescue plan in 2024 that would have seen the company sold to the Vision Group, the proposed deal collapsed two weeks ago, casting fresh uncertainty over the firm’s future.
Labour federation Congress of South African Trade Unions (Cosatu) has raised concerns about the potential impact on jobs and the regional economy.
KwaZulu-Natal secretary Edwin Mkhize said safeguarding employment remains the union’s primary focus.
“We prioritise the issue of protecting jobs in the economy, that is very critical. Currently, that is our main worry. That is why today is one of the most interesting days, but depending on how the court rules, it may be a doomsday for the province’s historical industry, which is the sugar industry,” he said.
The outcome of the court proceedings could have far-reaching consequences for workers and the broader sugar sector in KwaZulu-Natal, where the company has long been a cornerstone of the agricultural economy.