Tongaat BRPs publish amended rescue plans after judicial ruling.
By Lehlohonolo Lehana.
The business rescue practitioners of sugar producer Tongaat Hulett on Tuesday, 02 Junuary 2024, released amended plans for the company, setting a date of 10 January for a vote on the changes.
In December, the Durban High Court ordered that the two rescue plans 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.
During this meeting, the BRPs will facilitate discussions and conduct votes in accordance with the Act on motions to approve the amendment of each of the Revised Plans.
If one or both of the Revised Plans receive approval for amendment, the BRPs will then call for a vote to approve and adopt a Revised Plan. Creditors will have the opportunity to cast their votes for the Revised Plan of their choice or choose to abstain.
The BRPs will implement the approved and adopted Revised Plan. If any of the Revised Plans are not approved for amendment, no further vote on that Revised Plan will occur at the meeting.
If neither of the Revised Plans is approved for amendment, Section 153 of the Act will be invoked. This section allows the BRPs, in the event of Business Rescue Plan rejection, to seek a vote of approval from the holders of voting interests to prepare and publish a revised plan.
Tongaat Hulett entered voluntary business rescue last November, with business rescue practitioners Metis Strategic Advisors securing funding from the IDC to keep the company operational while the process was concluded.
The business rescue of Tongaat Hulett Limited has been bedevilled by numerous challenges, not least of which has been the ongoing threat and or institution of legal proceedings aimed at inter alia interdicting the business rescue process," Metis said in notes attached to the rescue plans.
These had been brought by "various groups and or entities with frequently divergent interests, which if not adequately anticipated and or fully dealt with will frustrate and possibly altogether halt the business rescue process, with the almost inevitable consequence of liquidation".