The withdrawal of Tongaat Hulett's liquidation application has been welcomed by stakeholders in South Africa's sugar industry.
Business tycoon Robert Gumede said the withdrawal of the Tongaat Hulett liquidation application will enable the sector to protect jobs and focus on stopping the dumping of foreign-produced sugar into the country.
Gumede, of Vision Group, one of the creditors of the company, said he is confident in turning around the fortunes of the company. It was announced that the Durban High Court granted the joint Business Rescue Practitioners (BRPs) of Tongaat Hulett Limited leave to withdraw the company's provisional liquidation application yesterday. The withdrawal of the application has been welcomed by different stakeholders who stated that the company is crucial to the economy of the province.
A joint statement issued yesterday said the BRPs of Tongaat Hulett Limited, the Industrial Development Corporation of South Africa (IDC), and the Vision Group of companies have concluded a binding agreement that provides a pathway to preserve Tongaat Hulett’s business rescue, maintain trading operations, and support the implementation of the approved business rescue plan.
Gumede said, “I am heartened (by) the final negotiations and agreement to save the sugar industry, the 250,000 jobs, and the growers’ investments, where Black business is stepping up to save a 134-year-old sugar group operating in the SADC region. This is a significant milestone for Vision, a Black-owned company. Vision is confident in turning the fortunes of the companies and hopes the SA government shall, from now on, protect the jobs and industry from the dumping of foreign-produced sugar from Brazil and Thailand.”
