Court to hear application to liquidate Tongaat Hulett

The future of Tongaat Hulett hangs in the balance as the Durban High Court hears an application to liquidate the company.

The sugar producer, which entered business rescue in 2022, has been unable to secure the funding needed to deal with its R11.7 billion debt.

This follows the collapse of a proposed acquisition by the Vision Consortium, led by businessman Robert Gumede and Rute Moyo.

Tongaat Hulett’s troubles date back to a 2019 accounting scandal, which triggered years of financial strain and repeated failed rescue efforts.

If the liquidation application is granted, it will have far-reaching consequences.

Thousands of direct and indirect jobs are at risk, along with the livelihoods of around 15,000 small-scale growers and 435 commercial farmers who depend on the company.

The 134-year-old group is weighed down by roughly R12 billion in debt, linked to the fallout from accounting fraud, unsuccessful restructuring attempts, and the collapse of its business rescue plan earlier in 2026.

Efforts to secure new investment from the Vision Consortium stalled, prompting business rescue practitioners to move ahead with a liquidation application.

The company has been in business rescue for four years.

In their latest update in March, practitioners said Tongaat Hulett continues to operate under difficult conditions.

The government has also stepped in, with the Industrial Development Corporation (IDC) indicating it may extend funding support until the end of June and potentially increase the facility, subject to approval.

The company's fate hinges on the outcome of court proceedings that get underway on Thursday.