Small-scale and emerging sugarcane farmers who have, for decades, relied on Tongaat Hulett for survival in KwaZulu-Natal are now facing a prolonged period of uncertainty after the collapse of the business rescue process and the commencement of formal liquidation proceedings.

In a letter dated 12 February 2026, the Business Rescue Practitioners (BRPs) informed all affected persons that a court process had already been initiated to close down the business.

“Affected persons are hereby advised that the Sale Agreements, which gave effect to the Vision acquisition lapsed on 7 February 2026, with Vision declining to grant an unconditional extension thereof. As a result, the BR Plan has become unimplementable. The Business Rescue Practitioners (“BRPs”) have accordingly concluded, pursuant to section 141.2(a) of the Companies Act, that a reasonable prospect of rescue no longer exists, and have today, 12 February 202,6 filed for an application to court for the provisional liquidation of the Company.

“The BRPs and management recognise the uncertainty this development creates for employees, growers, suppliers, customers, creditors and affected communities. The resilience and commitment demonstrated by stakeholders throughout this challenging period have been extraordinary and are sincerely appreciated. Further communication will follow as next steps are assessed in accordance with the Companies Act,” reads part of the letter sent to all affected persons.

After the court grants the liquidation order, the liquidators will start a process to sell Tongaat Hullets assets and collect monies owed to it. From there, they will compile a list of the people owed to pay them.

However, first in line to be paid will be SARS, then Class A shareholders (also called preference shareholders), and if there is some money left, they will then pay employees’ packages and farmers.