The Department of Trade, Industry and Competition in South Africa has said it will oppose the proposed liquidation of Tongaat Hulett Limited, warning that the closure of the major sugar producer could lead to severe economic damage and job losses, IOL reported.
Trade and Industry Minister Parks Tau said the government is contesting the liquidation in court. He made the remarks during the “Frank Dialogue on the Future of B-BBEE in South Africa” event held in Durban.
Responding to concerns about the possible economic fallout, Tau said the government was taking steps to challenge the liquidation proceedings. “We are challenging the Tongaat liquidation in court; that is what I can say about the matter going forward,” he said.
Concerns about the future of the company have also been raised by King Misuzulu kaZwelithini, who has engaged with businessman Robert Gumede of Vision Investments, which holds a large portion of Tongaat Hulett’s debt.
Traditional leader Inkosi Malusi Zondi, who was delegated by the king to discuss the issue with Gumede, said the minister had assured them that the government would intervene to help protect jobs linked to the company.
Zondi said discussions with the minister had taken place several times, including during the Durban meeting. He added that there was hope that efforts to save jobs at the company would succeed.
Meanwhile, the joint business rescue practitioners of Tongaat Hulett said they are confident that funds will be available to pay employees’ salaries due on March 25.
The practitioners confirmed that the provisional liquidation application was adjourned in the Durban High Court. The court has directed that a structured timetable be followed for the further handling of the case.
A hearing date will be set by the KwaZulu‑Natal Judge President.
The business rescue practitioners said that based on the progress made and the support shown by secured creditors, they and the company’s management expect funding to be available for the next salary payments while talks continue to secure longer-term stability for the company.
