South Africa’s highest court has refused to hear an appeal by Tongaat Hulett’s business-rescue practitioners, leaving the 134-year-old sugar producer facing a claim of approximately R517 million, or $32 million.
The Constitutional Court concluded that the appeal had no reasonable prospect of success and ordered the rescue practitioners to pay legal costs.
Its decision leaves intact an earlier Supreme Court of Appeal ruling that Tongaat could not suspend payments owed under South Africa’s statutory sugar-industry system after entering business rescue.
The South African Sugar Association is now entitled to pursue the outstanding amount, although the precise payment process will depend on the implementation of Tongaat’s rescue plan and arrangements surrounding money placed or required to be placed in escrow.
The judgment does not liquidate Tongaat Hulett.
