High Court to hear Tongaat Hulett liquidation case TODAY
· The South African
The High Court of South Africa in Durban is set to hear an application for the provisional liquidation of Tongaat Hulett on Friday.
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The application has been brought by the company’s business rescue practitioners.
Severe financial distress
Tongaat Hulett was placed under business rescue in 2022 amid severe financial distress.
Since then, the 134-year-old sugar producer has seen an estimated R12 billion wiped off its share value, despite efforts to stabilise the company.
In 2024, creditors approved a rescue plan that would have seen the embattled sugar giant sold to the Vision Group.
However, two weeks ago, the group announced the collapse of that transaction, casting fresh uncertainty over the company’s future.
The potential liquidation has raised alarm among labour unions and industry stakeholders, particularly in KwaZulu-Natal, where the sugar sector plays a significant economic role.
Primary concern
Congress of South African Trade Unions (Cosatu) KwaZulu-Natal Secretary Edwin Mkhize said protecting jobs remains the union’s primary concern.
“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,” Mkhize said.
The court’s decision could have far-reaching implications for thousands of workers, growers and businesses linked to the province’s sugar value chain.