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RCL Foods, the owner of Selati Sugar, and industry association South African Sugar Association (SASA) have launched urgent applications seeking to delay the business rescue vote of Tongaat Hulett on Friday, arguing that a battle over sugar levies risk making the proceedings unlawful.
In late November, the Durban High Court ruled against the business rescue practitioners (BRPs) of the sugar producers, ordering that the process which provides protection against creditors did not absolve them of obligations to make payments due to SASA.
SASA's claims against Tongaat total R1.94 billion, with the high court finding in favour of arguments that the obligations to pay were statutory rather than contractual, and were "simply the costs of doing business".
