Tongaat owes sugar association R517m in outstanding industry levies
At issue The main issue in the SCA application was whether the Sugar Industry Agreement, promulgated in terms of the Sugar Act, qualifies as an “agreement” under a section of the Companies Act, thereby permitting the suspension of payment obligations owed under it while business rescue is in progress.
It added that the BRPs on 31 May 2023 published a business rescue plan that did not make provision for payment of any outstanding industry levies or redistribution payments under the Sugar Industry Agreement and instead classified these obligations as unsecured debt.
The SCA appeal followed the High Court in Durban in December 2023 dismissing with costs the BRPs’ application for an order declaring that a section of the Companies Act, read with the definition of “agreement”, empowers the BRPs to suspend any of Tongaat’s payment obligations that arise under the Sugar Industry Agreement.
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