Vision Group has been working on acquiring THL for the last 3 years of BR and remains steadfast in its commitment to the survival and long-term viability of Tongaat Hulett Limited (THL). The BRP’s filing for liquidation today is a disappointing outcome which unfortunately introduces more uncertainty into an already fragile regional sugar ecosystem that is reeling from delayed industry reforms especially tariffs.
As the lead secured lender with a substantial exposure to THL, under the proposed provisional liquidation, Vision will now focus its attention to securing control over the assets that had been pledged as security, and to protecting the integrity of the business, its loyal workforce, its extensive network of growers and suppliers and the communities that have hosted the business for over 130years.
The filing today follows the failure of the Business Rescue process to effectively stabilize THL operations and maximise a turnaround, leaving liquidation as the necessary legal mechanism to allow secured creditors like Vision to take direct control of the assets and initiate a comprehensive recovery plan of the South African sugar business.
Our primary objective is the preservation of the sheer magnitude of livelihoods tied to this over 130-year-old heritage business. The impact of a total collapse of THL South African operations would be catastrophic for the regional economy, particularly for the 250,000 jobs supported by the cane growing sector. Of these critical roles, 220,000 are based in KwaZulu-Natal and 30,000 in Mpumalanga, alongside the 2,600 direct employees at Tongaat South Africa. Vision’s quest is to save these jobs and ensure that the 16,000 cane growers enterprises who form the backbone of the industry are not left more vulnerable.
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Since the approval of the Vision BR Plan over two years ago, Vision has invested billions of rands, to acquire the Lender Group claims, assisted management to turnaround THSA plants to be the best performing entity in the industry, sought new clients, assisted in recruitment of key leadership – sometimes at its cost, engaged government through Minister of DTIC for industry reforms and to save jobs and the sugar industry. Despite these best efforts, with the failure of the BR Plan, the BRP’s led by Trevor Murgatroyd had to act in the best interest of the creditors. While the legal action has led to provisional liquidation, this process provides the most transparent path for government and other key stakeholders to engage in a structured rehabilitation of the assets without the BRP and their advisors who were appointed in October 2022. It is Vision’s objective and commitment is to remain focused on saving jobs and livelihoods in South Africa.
Vision as a secured creditor, will work with key stakeholders in trying to find a lasting solution that saves the 220,000 jobs in KZN alone. Vision will engage with regulators, employees, labour unions, cane growers, South African Sugar Association, suppliers, clients, traditional leaders in KZN and the liquidators to be appointed to reduce uncertainty as quickly as possible and to get the mills ready for the new season.
Vision is eager to commence its five-year turnaround plan, which focuses on operational stability and returning the sugar mills to profitability on a sustainable basis. We remain dedicated to working with all relevant parties to protect regional food security and transform THL into a successful, pan-African agri-business.