RCL Foods, the owner of Selati Sugar, says it will withdraw its application for an urgent interdict against one of the business rescue plans of Tongaat Hulett after engaging with that company's business rescue practitioners.

RCL Foods had filed an application on Friday against the plan of the Vision consortium, viewing it as unlawful given that it "did not provide for a settlement of Tongaat's statutory obligations." But the group said in a statement on Sunday that the business rescue practitioners have agreed to changes.

Last week, amended plans for the company were released, and a new date of 10 January was set for a vote on the changes and possibly new ownership. In December, the Durban High Court ordered that the two rescue plans, released in November, 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 amid a battle over industry payments. In November, the court concluded that the business rescue process - which provides protection against creditors - did not absolve Tongaat of obligations to make industry payments, a matter that is being appealed.

The revised plans had made provision for payment of about R526 million. But the Vision plan had entailed making a payment into an escrow account after the implementation of the business plan. Business Times reported RCL Foods as saying they viewed this plan as an obstructive delay to the payment of the claims, given the implementation of a plan could take years. In addition, payment from the escrow account would only take place after the appeals process had run its course, which the Vision plan assumes will take longer than three years.

RCL Foods said it had taken the legal action in the broader interest of the sugar industry, which must not be undermined by Tongaat's business rescue process, even if the viability of SA's biggest sugar producer remained critically important.

"While the legal process has resolved our concerns about the lawfulness of the Vision plan, we remain concerned about the impact it will have on growers and millers," RCL said in a statement.

"The Vision plan assumes that SASA will not be paid for at least three years and in contrast the RGS plan provides for immediate settlement of the SASA claim amount while not leaving any other affected party worse off."

Tongaat's creditors have been asked to vote on two plans. The Vision consortium is tied to mogul Robert Gumede, with companies Terris, Guma, Remoggo - which are registered in Mauritius - and Almoiz, one of Pakistan's largest agribusiness companies.

The second plan sets out the acquisition by Mozambican conglomerate RGS Group through its South African subsidiary RGS Bidco. Tongaat's business rescue practitioners did not immediately respond to requests for comment.