The Durban High Court is expected to receive an update on Wednesday regarding progress made in the business rescue process of sugar producer Tongaat Hulett since the matter was last heard in April.
The court previously postponed an application by the company’s business rescue practitioners for the provisional liquidation of Tongaat Hulett, opting instead to allow efforts to stabilise the business to continue.
The adjournment came after the Industrial Development Corporation (IDC) committed R200 million to ensure that Tongaat Hulett’s mills in KwaZulu-Natal could process this year’s sugar cane harvest, providing temporary relief to the embattled company.
Tongaat Hulett has been under business rescue since 2022 as it grapples with financial difficulties and mounting debt.
The application for liquidation followed the collapse of a proposed takeover by the Vision consortium, whose bid to acquire the company stalled in February, casting uncertainty over the future of one of South Africa’s largest sugar producers.
The outcome of the rescue process is being closely watched by stakeholders across the agricultural sector, as Tongaat Hulett processes sugar cane from approximately 60 percent of the country’s growers, making its survival critical to the sustainability of South Africa’s sugar industry.
During Wednesday’s proceedings, the court is expected to hear details on developments in the rescue plan, the company’s current financial position and the prospects for avoiding liquidation.