RGS Group Holdings has intensified its legal challenge against the liquidation of Tongaat Hulett Ltd, arguing for greater transparency amid concerns over jobs and economic stability in KwaZulu-Natal. The Mozambican group claims the company remains rescuable without the Vision consortium's plan, which it deems unlawful. Key stakeholders, including government bodies, are set to join the opposition in court.
RGS Group Holdings, a Mozambican entity, has filed an answering affidavit opposing the business rescue practitioners' (BRPs) application for the provisional liquidation of Tongaat Hulett Ltd (THL). The BRPs submitted their application electronically on 12 February 2026 at 10:50, with a full copy published the next day, coinciding with the deadline for parties to notify their intent to oppose. The founding affidavit spans 118 pages, and the entire application totals 1,356 pages, leaving opponents limited time to respond. RGS managed to file its notice of opposition on 17 February, but received notification that its answering affidavit would be considered out of time.
Momade Aquil Rajahussen, chair of RGS, described the BRPs' urgency and timing as 'abusive' and 'unacceptable conduct,' given the 'catastrophic implications' of liquidation. He highlighted risks to thousands of direct jobs, tens of thousands of rural livelihoods, and northern KwaZulu-Natal's agricultural sector. RGS asserts four main grounds for opposition: THL is capable of rescue without Vision; Vision's ownership of R11.73-billion in Lender Group claims and security does not bar an alternative plan, partly due to the Vision plan's alleged unlawfulness; liquidation would be disastrous, and the court should direct the BRPs to develop a new rescue plan; and the court must order disclosures, including THL's management accounts and Vision's acquisition agreements.
RGS argues the BRPs' liquidation push stems from the Vision plan's failure, not THL's insolvency, noting the absence of detailed financial evidence in the affidavit. The group positions itself as a potential investor, submitting a term sheet with the African Export-Import Bank for $280-million (about R4.5-billion) to support a rescue. It also offers interim funding guarantees to bridge THL's R600-million working capital needs, currently supported by the Industrial Development Corporation (IDC).
Regarding Vision, RGS claims the consortium misrepresented its funding at the 10-11 January 2024 creditors' meeting, acquired the claims for R3.24-billion on 9 May 2025 using borrowed funds from Standard Bank, and enforced them on 8 February 2026 without injecting capital into THL. Rajahussen called this 'predatory behaviour.' The BRPs and Vision have not verified the security's validity, based on an unusual agency theory involving THL's subsidiaries.
Opposition to liquidation includes the Department of Trade, Industry and Competition, IDC, and SA Canegrowers Association. RGS seeks to set aside the Vision plan and secure disclosures, though pressures for a compromise persist.
