“Gumede’s Vision Group — whose plan to take ownership of Tongaat assets in exchange for about R8bn for assuming portions of the sugar maker’s debt had secured shareholder and creditor approval — failed to refinance the IDC’s post-commencement facility, deposit R517m into escrow for the South African Sugar Association and provide R75m for concurrent creditors.”

“With these commitments unmet, and Vision refusing to extend the closing deadline, the practitioners applied for provisional liquidation.”

“The IDC, whose mission is to act as a countercyclical investor — stepping in when private capital is scarce or risk-averse — is already weighing up buying ArcelorMittal and now faces a second high-profile workout that tests its risk appetite and sharpens political scrutiny.”

“In granting the postponement of the liquidation application, judge Rithy Singh acknowledged that “Tongaat is the lifeblood of KwaZulu-Natal”.”

“The wheels began coming off for Tongaat in June 2019 when it asked the JSE to suspend trade in its shares after an investigation flagged accounting practices that meant its financial statements could not be relied on.”

“The company, which traces its roots to the 1850s, in 2020 initiated proceedings against former CEO Peter Staude, former CFO Murray Munro and former finance executive Sean Slabbert, demanding R450m from them based on a damning PwC forensic investigation released a year earlier.”

“In 2022 the men were charged with fraud amounting to R3.5bn.”

“According to the provisional indictment, they acted with a common purpose to commit the crimes, related to about 69 property deals involving Tongaat Hulett Development, between 2015 and 2018.”