In a recent development, Tongaat Hulett Limited, a South African company undergoing business rescue proceedings, is facing a legal challenge from RGS Group Holdings Limited. The matter, currently before the High Court of South Africa, KwaZulu Natal Local Division, Durban, has introduced significant complexities to the ongoing rescue efforts.
Urgent Application Lodged by RGS Group Holdings Limited
RGS Group Holdings Limited, identified as “affected persons” in the business rescue proceedings, has lodged an urgent application, invoking section 128 of the Companies Act 71 of 2008. The application, filed in collaboration with RCL Foods Sugar & Milling (Proprietary) Limited and the South African Sugar Association, seeks to address crucial aspects of the business rescue process.
Consolidation of Applications for Efficiency
The application advocates for the consolidation of the hearing with those filed by RCL Foods Sugar & Milling (Proprietary) Limited and the South African Sugar Association on 6 December 2023. This move aims to streamline the legal process and address shared concerns collectively.
Order to Convene a Meeting and Prohibition on Pre-Meeting Proxy Vote
RGS Group Holdings Limited’s application includes a request for an order directing the Business Rescue Practitioners (BRPs) to convene a meeting on Thursday, 14 December 2023, in accordance with section 151 of the Companies Act. Furthermore, it seeks to prohibit the BRPs from conducting a “Pre-Meeting Proxy Vote,” a move intended to determine the sequence of proposed business rescue plans before the formal meeting.
Priority on RGS Business Rescue Plan
Of particular note is the application’s emphasis on prioritizing the RGS business rescue plan. RGS Group Holdings Limited is seeking an order for the BRPs to table their plan first for consideration at the meeting and subsequently call for a vote on its adoption. This has sparked opposition from both Tongaat Hulett Limited and the BRPs.
Company’s Response and Opposition
In response to the application, Tongaat Hulett Limited and the BRPs have officially opposed the move. The legal battle adds another layer of complexity to the ongoing business rescue proceedings, raising questions about the direction the process will take and its potential impact on the company’s future.
Conclusion
As the legal proceedings unfold, Tongaat Hulett Limited finds itself navigating through challenging waters in its business rescue journey. The outcome of this legal battle could significantly influence the direction of the rescue efforts and the ultimate fate of the company. Stakeholders are encouraged to closely follow updates through official channels for the latest developments in this critical phase of Tongaat Hulett Limited’s corporate trajectory.
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