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”.
South Africans need to be in the know if we want to create a prosperous future. News24 has kept the country informed for 25 years, and we’re about to enter a new chapter of fearless journalism. Join our free subscription trial to unlock this story and a world of news aimed to inform, empower, and inspire.
Next on Business
Former KPMG partner on the hook for almost R3m in costs in VBS auditor disciplinary process
05 Dec
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : News24 – https://www.news24.com/fin24/companies/selati-owner-sugar-body-launch-urgent-bids-to-interdict-tongaat-business-rescue-vote-20231206
