The Fiji Sugar Corporation is running out of funds for survival and wants a recent government loan guarantee for 33-million US dollars charged into a grant.
The Fiji Times quoted industry leaders as saying the company cannot afford to repay the loan.
The company chairman, Hafiz Khan, has confirmed the state has provided a revolving fund the company can dip into.
But he could not say how the company would repay funds used from the revolving fund.
Company sources say the Corporation is in a desperate financial situation.
A delegation of sugar industry stakeholders has made representations to the finance ministry to considert the plight of the company and inject much-needed funds.
The report of the technical insolvency of the company comes just ahead of next month's start to the harvesting season.