Last year, creditors in Tongaat voted in favour of a business rescue plan put forward by Mpumalanga businessman Robert Gumede’s investment consortium, Vision. Photo: Supplied
The High Court in Durban has dismissed RGS Group Holdings’ application seeking to interdict Vision Group’s implementation of Tongaat Hulett’s business rescue plan related to the sale of the agro-processing entity’s assets and businesses.
Last year, creditors in Tongaat voted in favour of a business rescue plan put forward by Mpumalanga businessman Robert Gumede’s investment consortium, Vision. This was after an accounting scandal rocked Tongaat Hulett, with the company tail-spinning into a debt of R8.2 billion, prompting shareholders to adopt an amended business rescue plan, which the company’s business rescue practitioners now intend to implement.
However, in November last year, RGS Group lodged an application in the Durban High Court seeking to interdict implementation of the business rescue plan. It also sought to set aside Tongaat’s business rescue plan, which was approved and adopted by a majority of the company’s creditors a year ago.
RGS sought to stop the Vision Asset Transaction, which involves the sale of Tongaat Hulett’s assets and business to the Vision Parties.
Tongaat Hulett said on Wednesday that the Durban High Court had “dismissed” RGS’ application to interdict implementation of the adopted business rescue plan. The court also ordered RGS to pay costs related to application.
“In its ruling, the Court found that RGS had not demonstrated grounds for urgency, or grounds to justify the interdict sought,” said Tongaat Hulett.
The court, however, granted RGS “leave to supplement its founding affidavit” related to RGS’ bid to have the business rescue plan set aside.
Concurrently, Tongaat Hulett and its business rescue practitioners were “granted leave to deliver further affidavits in response” and in relation to RGS’ application to have the business rescue plan set aside.
The application is pending determination by the Court at a later stage should RGS opt to pursue the application to have the business rescue plan set aside.
RGS was also seeking the disclosure of a range of information from both the business rescue practitioners and the Vision Parties.
Subsequent to the court ruling, Tongaat Hulett on Wednesday notified of the appointment of Johann van Rooyen as an executive director. Van Rooyen has been a member of the Tongaat Hulett Executive Committee since 2020.
Gary Baranov has also been appointed as executive director on the Tongaat Hulett board after serving as head of finance for the company since October 2021.
“Baranov is a qualified and registered chartered accountant with the South African Institute of chartered accountants and has diverse experience in finance and business development, with a strong background in acquisitions, strategic finance, and leadership roles,” said the company.
After Van Rooyen’s latest appointment, Evashni Govender has become group company secretary, having served as Tongaat’s legal counsel since 2020.
The board of Tongaat Hulett hopes that the new appointments will ensure the continued implementation of the approved and adopted business rescue plan.
BUSINESS REPORT