The development allows the company's mills to reopen in time for the crushing season, a critical step for more than 18,000 growers who depend on these facilities to process their cane. Most of these farmers are small-scale growers with no alternative milling options, Foodformzansi.co.za reported.

The South African Canegrowers Association warned that liquidation would have made farming operations unviable, potentially leading to widespread job losses in rural areas.

While mills in other regions had already begun operations, Tongaat's facilities remained shut as the company awaited the outcome of a winding-up case in the Durban High Court.

Dr Thomas Funke described the additional funding as a major relief, saying it helps protect jobs and sustain rural communities that rely heavily on the sugar industry.

The company has been under business rescue since October 2022. The Vision Group became the main creditor after taking over Tongaat's bank loans and later approved its own rescue plan using its voting rights.

However, the plan ran into trouble earlier this year when business rescue practitioners approached the court for liquidation, arguing that the proposal could not be carried out due to additional funding demands and changes introduced by Vision. With the crushing season nearing, the company had run out of working capital.

The liquidation move was opposed by several stakeholders, including growers, the Industrial Development Corporation, government representatives, and the RGS consortium, which had submitted an alternative rescue plan.

Ahead of the court hearing, a new agreement was reached under which the Industrial Development Corporation increased its post-commencement funding from R2.3 billion to R2.5 billion. The additional R200 million will support operations until the end of June, allowing the company to continue trading in the short term.

While some stakeholders called the funding a lifeline, others described it as only a temporary fix, pointing to the company's ongoing financial difficulties and concerns over the viability of the current rescue plan.

In court, lawyers representing different groups presented varying views. Some supported delaying the liquidation proceedings to allow negotiations between key parties, while others argued for scrapping the existing rescue plan to consider alternative proposals.

Judge Rithy Singh noted that it was in the interest of stakeholders to keep the company operating for now, describing Tongaat Hulett as vital to the province's economy. The court adjourned the liquidation case until June 17.

The decision provides short-term stability, but the long-term future of the company remains uncertain as discussions continue among stakeholders.