A last-minute R200-million funding deal from the Industrial Development Corporation has prevented the liquidation of sugar giant Tongaat Hulett, allowing its mills in KwaZulu-Natal to open for the cane crushing season. This provides relief to more than 18,000 growers who depend on the company's facilities. The Durban high court adjourned the winding-up application until 17 June.
Canegrowers in KwaZulu-Natal expressed relief after the Durban high court averted the liquidation of Tongaat Hulett on Thursday. The Industrial Development Corporation (IDC) agreed to provide an additional R200-million in post-commencement funding, increasing its commitment from R2.3-billion to R2.5-billion until the end of June. This enables the company's mills to process 3.8-million tons of cane from over 18,000 growers, mostly small-scale farmers.
Tongaat Hulett entered business rescue in October 2022, with the Vision Group becoming the controlling creditor and approving its own rescue plan. Business rescue practitioners filed a winding-up application in February 2026, citing the plan's unfeasibility as Vision demanded more funds from the IDC and industry reforms. The company lacked cash to trade ahead of the milling season.
In court before Judge Rithy Singh, opposition came from creditors, canegrowers, the IDC, Trade, Industry and Competition Minister Parks Tau, and the RGS consortium. Dr Thomas Funke, CEO of SA Canegrowers, called the funding a 'massive relief,' noting it safeguards thousands of rural jobs. Advocate Arnold Subel, for the practitioners, said the IDC agreement offered 'a further chance' for rescue.
Advocate Ruan Kotze, for RGS, argued Vision's plan had failed and was deemed abusive by Minister Tau, urging it be set aside. Judge Singh noted it was not in stakeholders' interests to end business rescue for Tongaat Hulett, described as 'the lifeblood of this province.' She adjourned proceedings to 17 June.