The High Court of South Africa in KwaZulu-Natal has dismissed an application brought by investment management company RGS Group Holdings to interdict the implementation of the adopted business rescue plan of distressed sugar producer Tongaat Hulett.

The court also ordered RGS to pay the costs of the application on the highest scale, including the costs of two counsel, Tongaat said in a statement.

In its ruling, the court found that RGS had not demonstrated grounds for urgency or grounds to justify the interdict sought by it.

The application was made to interdict the implementation of the adopted business rescue plan, particularly the Vision Asset Transaction, which involves the sale of Tongaat's assets and business to the Vision Parties.

Additionally, RGS seeks the disclosure of a range of information from both the business rescue practitioners (BRPs) and the Vision Parties.

In the application, RGS also sought to set aside the company's business rescue plan, which was approved and adopted by the requisite majority of creditors on January 11, 2024.

However, the application to set aside the business rescue plan was not before the court for determination.

The court granted RGS leave to supplement its founding affidavit, while the BRPs and Tongaat were granted leave to deliver further affidavits in response to this part of the application, which is pending determination by the court at a later stage, if RGS chooses to proceed with its application, Tongaat said.

Separately, Tongaat made changes to its board of directors. The board and the BRPs appointed Johann van Rooyen executive director, with effect from February 18.

Van Rooyen has been a member of the Tongaat Hulett executive committee from January 1, 2020, and was appointed group company secretary and risk executive on the same date. He was appointed interim chief business transformation and governance officer on March 1, 2024, and continued to support the BRPs to implement the published business rescue plan, and the Tongaat group with transformation initiatives.

Additionally, Gary Baranov has also been appointed as an executive director to the Tongaat board, with effect from February 18. He has been the head of Tongaat group finance since October 2021 and acting CFO since March 1, 2024.

The board and BRPs further appointed Evashni Govender group company secretary, with effect from February 18. She has been Tongaat’s group legal counsel since November 2020.

“The BRPs remain committed to implementing the approved and adopted business rescue plan and shareholders and Affected Persons are also reminded that all notices and documents regarding the business rescue proceedings of the company are available on the THL website under the 'Business Rescue' tab,” Tongaat said.