Durban – The Durban High Court has granted Tongaat Hewlett Limited's Joint Business Rescue Practitioners (BRP) permission to withdraw the company's provisional liquidation application.
This move today, 17 June 2026, follows significant recent progress between Vision and the Industrial Development Corporation (IDC) towards the adoption of a business rescue plan.
This includes the extension of the IDC Post-Commencement Financing (PCF) regime and the conclusion of a basic agreement between IDC, Vision and THL that will, inter alia, regulate the implementation of the adopted business rescue plan.
As previously communicated, two basic requirements had to be met for the BRP to be in a position to reasonably consider withdrawing the application:
1. Liquidity: Securing binding and unconditional funding commitments sufficient to support Tongaat's continued operations. and
2. Feasibility: The conclusion of a concrete and viable transaction that achieves the objectives of the adopted vision business rescue plan.
Significant progress is currently being made in advancing both requirements.
First, IDC agreed to extend Tongaat Hewlett's PCF facility until September 2026, providing continued liquidity to support the company's operations while the business rescue transaction progresses.
Second, IDC, Vision and THL have entered into a binding Memorandum of Understanding governing the implementation of the transactions contemplated in the adopted Business Rescue Plan.
This includes arrangements for the refinancing of the PCF facility, the disposition of the South African Sugar Association (SASA) debt, the distribution of concurrent creditors and the conclusion of new distribution agreements.
The BRP was therefore satisfied that sufficient progress had been made to justify the withdrawal of the liquidation application and the continuation of the business rescue plan.
BRP is relieved and deeply grateful that it no longer has to file for liquidation, an outcome that BRP and all stakeholders had sought to avoid.
The liquidation application was initiated by BRP as a last resort in accordance with its legal obligations, and its withdrawal marks an important milestone for Tongaat Hulett and everyone dependent on the sugar value chain.
BRP has consistently recognized that liquidation would have dire consequences for employees, producers, suppliers, creditors and the wider community that depends on Tongaat Hewlett and the sugar value chain.
The decision on the liquidation application was taken only after the BRP concluded, on objective grounds and in accordance with its statutory obligations, that the adopted business rescue plan could no longer be implemented, as stated above.
BRP remains focused on working with all stakeholders to ensure the urgent implementation of the transaction and achieving the best possible outcome for employees, producers, creditors and the wider industry.
However, while the withdrawal of the liquidation application and the extension of the PCF are positive developments, the fundamental structural challenges facing the local sugar industry, such as the increasing influx of cheap imported sugar into the South African market, remain unresolved.
Unless these challenges are addressed urgently, they will continue to pose significant risks not only to Tongaat Hewlett's recovery, but also to the long-term sustainability of the wider industry.
South Africa is currently experiencing record import volumes, with an estimated 111,696 tonnes of deep sea sugar imported or expected to be imported in the first three months of this season alone.
This represents almost 50% of the total imports recorded for the entire 2025/26 season. If this trend continues, imports could reach around 450,000 tons this season.
Similar import levels in 2018 led to significant job losses and the closure of two sugar mills.
Tongaat Hulett looks forward to working with DTIC and ITAC to establish an effective regulatory environment.
This is a rapidly evolving emergency that requires decisive action.
For South Africa's sugar industry to survive in the short term and thrive in the long term, imports must be reduced immediately and an environment favorable to local trade fostered.
The gains secured through the rescue process would be lost without it, at the direct cost of jobs, producer livelihoods and the sustainability of the wider industry.
