Tongaat Hulett's stakeholders, including thousands of small scale sugar cane farmers, will be relieved that the Business Rescue Practitioners have been able to withdraw their provisional liquidation application.
The Durban High Court earlier today allowed the joint Business Rescue Practitioners (BRPs) of Tongaat Hulett (THL) to withdraw the company's provisional liquidation application on the day the KwaZulu-Natal High Court was to reconvene to hear arguments.
The move will save thousands of jobs in KwaZulu-Natal that might have been lost had the liquidation proceeded. It follows substantial progress being made between Vision, the private company that won a bid to take over Tongaat, the BRPs, and the Industrial Development Corporation (IDC), to implement the adopted Business Rescue Plan.
The liquidation application was launched in October 2023 as a last resort by the BRPs in line with their statutory obligations, and the withdrawal of the application is a significant milestone for everyone who depends on Tongaat Hulett and the sugar value chain.
“The BRPs have consistently recognised the dire consequences that liquidation would have for employees, growers, suppliers, creditors, and the broader communities that depend on Tongaat Hulett and the sugar value chain. The decision to apply for liquidation was taken only after the BRPs concluded that the adopted Business Rescue Plan could no longer be implemented.”
