Tongaat Hulett’s liquidation proceedings have been halted after the company received further funding, allowing it to extend its business rescue proceedings. <\/p>\n\n\n\n
The company was set to enter liquidation proceedings, but it received an extension of the Post-Commencement Funding (PCF) facility from the Industrial Development Corporation (IDC).<\/p>\n\n\n\n
The facility has been extended to 30 June 2026<\/strong> and increased from R2.3 billion to R2.5 billion.<\/p>\n\n\n\n This gives the company the liquidity it needs to support its ongoing operations pending the finalisation of the transaction.<\/p>\n\n\n\n The KwaZulu-Natal High Court thus granted an adjournment of the provisional liquidation application, with the matter now set down for hearing on 17 and 18 June 2026. <\/p>\n\n\n\n The adjournment was supported by the Business Rescue Practitioners, the IDC, the South African Cane Growers Association, and the Vision Consortium. <\/p>\n\n\n\n The sugar producer’s history dates back to 1892 and has grown into one of the nation’s primary sugar producers, supporting thousands of jobs. <\/p>\n\n\n\n The company was placed in business rescue in October 2022 after an accounting scandal under its former management. <\/p>\n\n\n\n Despite funding from Vision and the IDC, the companies would disagree over further arrangements, which led the business rescue practitioners to apply for liquidation in February.<\/p>\n\n\n\n Tongaat has continued to operate under extremely challenging conditions since the liquidation application was sent in February. <\/p>\n\n\n\n However, employees have received their salaries, growers’ cane payments, and critical off-crop maintenance work has progressed, ensuring operational readiness for the upcoming season.<\/p>\n\n\n\n Although the PCF developments address the company’s short-term liquidity needs, the withdrawal of the liquidation application depends on a concrete transaction that meets the business rescue’s goals. <\/p>\n\n\n\n The postponement of the liquidation proceedings will thus allow parties additional time to progress engagements in this regard.<\/p>\n","protected":false},"excerpt":{"rendered":" Tongaat Hulett’s liquidation proceedings have been delayed to June after the IDC extended a funding facility. <\/p>\n","protected":false},"author":95,"featured_media":851342,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[22744],"class_list":["post-857424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-tongaat-huleet"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=857424"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857424\/revisions"}],"predecessor-version":[{"id":857437,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857424\/revisions\/857437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/851342"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=857424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=857424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=857424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}