Tongaat Hulett to appeal sugar levies order
The SA Canegrowers Association says it's disappointed with Tongaat Hulett's decision to file an appeal in an ongoing sugar levies case.
The Durban High Court last year ordered the sugar producer to pay over R500 million in statutory levies to the association.
Tongaat Hulett entered business rescue two years ago.
Its business rescue practitioners now have a month to submit their appeal to the Supreme Court of Appeal.
Higgins Mdluli, who's with the SA Canegrowers Association, says the sugar giant should stop fighting the issue.
He says payment delays will affect thousands of growers in KZN and Mpumalanga.
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"SA Canegrowers had hoped the new owners of THL, the Vision Consortium, would have honoured the outstanding levies and put the matter to rest.”
“Prolonging this matter with legal action puts the livelihoods of the South African sugar industry, including small-scale growers and the one million people that the industry supports, at risk."
In January, a business rescue plan by South African businessman, Robert Gumede’s consortium, Vision, was approved by creditors.
Vision’s proposal includes exchanging Tongaat Hulett’s debt for equity.
Tongaat Hulet’s shareholders are expected to meet next week to vote on Vision’s plan.
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