An urgent application to interdict Tongaat Hulett’s business rescue plan was dismissed in the Durban High Court yesterday.

Brought by Mozambican conglomerate, RGS Group, the application sought to interdict the Vision Investments plan, which was approved by Tongaat Hulett’s creditors early last year.

RGS – which was previously in the running for the Tongaat Hulett takeover – argued that the process of approving Vision Investments was improper and that the group could not prove its ability to finance the plan.

In his decision however, Judge ME Nkosi ruled that the application lacked the grounds for urgency.

“If RGS was genuinely concerned about the asset sale being unlawful and/or in contravention of section s150 of the Companies Act, it ought to have interdicted the BRPs from tabling that Plan for consideration at the creditors’ meeting held on 10 and 11 January 2024,” wrote Judge Nkosi in his ruling.

“In view of the aforegoing, I see no reason for this court to entertain Part A of RGS’s application on the basis of urgency.”

The court ordered RGS to pay the costs of the application including the costs of two counsel where two counsel were employed.

A second part of RGS’ interdict application sought to set the Vision Investments plan aside. Judge Nkosi granted the group leave to supplement the application and it has the right to further pursue the matter.

Tongaat Hulett’s business rescue practitioners, Metis Strategic Advisors, said the business rescue process remained on track.

“The business rescue process is now nearing its final stages. We expect the transfer of Tongaat’s assets to Vision Investments to close well within 2025. It’s a complex transaction and these tend to take time.”

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