Tongaat Hulett revises rescue plans and sets new meeting date

The business rescue practitioners of sugar producer Tongaat Hulett on Tuesday released amended plans for the company, setting a date of 10 January for a vote on the changes and possibly new ownership.

In December, the Durban High Court ordered that the two rescue plans, released in November, could not be voted on in their current form. This followed a challenge by the South African Sugar Association (SASA) and RCL Foods, who sought to declare the business rescue plan unlawful amid a battle over industry payments.

In November, the court concluded that the business rescue process - which provides protection against creditors - did not absolve Tongaat of obligations to make industry payments.