Remgro to cough up in liquidation delay?

Wed, 14 Dec 2016 04:09
Large thelo wakefield2 800

UPDATE: The delay in the finalisation of the liquidation of Western Province Rugby (Pty) Ltd may cost benefactor Remgro more than they anticipated. Jan de Koning reports.

WP Rugby, the commercial arm of the Western Province Rugby Union, went to the Cape Town High Court on Monday in the hope of finalising their application for liquidation.

However, claimant Aerios - who opposed WP Rugby's application - ensured that all did not go entirely according to plan.

Judge Ashley Binns-Ward decided to reserve judgement on WP Rugby's application for liquidation, although the judge did not give a date for when he would announce his judgement.

The provisional state of liquidation was extended.

It means Remgro, who have already given the WPRFU a 'bridging loan' to meet its current financial obligations, may be asked for more money.

Chris van Zyl, the provisional liquidator for WP Rugby, told rugby365 that it is hoped that judgement will follow as soon as possible so that the way forward can be resolved one way or another "given that the provisional liquidators may well have to borrow more money" to meet the ongoing commitments in the event that the company is finally liquidated.

"In the event that the provisional order is discharged by the court then the company will revert to the management of its board of directors and they will then have to find funding at short notice to enable the company to continue trading," Van Zyl told this website.

Last week Remgro, in reply to questions by rugby365, was reluctant to disclose the extent of their involvement and financial assistance of the troubled WPRFU and WP Rugby.

However, it has been confirmed that they have provided a 'bridging loan' to the WPRFU to help them cope with their immediate obligations towards players and staff, as well as running costs.

Although unconfirmed, it is believed that Remgro may have advanced the initial loan, knowing that down the line they will get an additional 50 percent of the shares from WPRFU - upping their  percentage to 74.

The way was cleared for Remgro to obtain a controlling share of the WPRFU when the South African Rugby Union last week made constitutional changes that allowed unions and franchises to 'sell' up to 74 percent of their shares to private enterprises.

It would be interesting to note what would happen if judge Binns-Ward was to discharge the provisional liquidation order, as Aerios - who claimed in court that WP Rugby's sole intended desire through the liquidation was to get rid of Aerios as one of its creditors - is believed to be owed in the region of ZAR7-million.

Would Remgro be willing to fork out that much, knowing that Aerios are entitled to a share of future commercial dealings?

The contract between Aerios and WP Rugby is meant to run until 2023.

By Jan de Koning
@king365ed
@rugby365com

There are currently no matches being played
FIXTURE GMT VENUE
Fri, 27 April 2018
Hurricanes v Sunwolves 07h35 Wellington
Stormers v Rebels 13h00 Newlands
Leicester Tigers v Newcastle Falcons 18h45 Welford Road
Sat, 28 April 2018
Reds v Lions 05h05 Suncorp Stadium
Blues v Jaguares 07h35 Eden Park
Brumbies v Crusaders 09h45 Canberra
Kings v Cheetahs 13h00 Nelson Mandela Bay Stadium
Exeter Chiefs v Sale Sharks 14h00 Sandy Park
Worcester Warriors v Harlequins 14h00 Sixways
Gloucester v Bath 14h00 Kingsholm
Connacht v Leinster 14h05 Sportsground
Dragons v Scarlets 14h05 Rodney Parade
Bulls v Highlanders 15h15 Loftus Versfeld
Treviso v Zebre 16h00 Stadio Monigo
Cardiff Blues v Ospreys 16h35 Cardiff Arms Park
Munster v Ulster 16h35 Thomond Park
Edinburgh v Glasgow Warriors 18h35 Myreside
Sun, 29 April 2018
London Irish v Saracens 14h00 Madejski Stadium
Wasps v Northampton Saints 14h00 Ricoh Arena
RESULT SCORE
Sun, 22 April 2018
Racing Metro v Munster 27 | 22
Brumbies v Jaguares 20 | 25
Sat, 21 April 2018
Ulster v Glasgow Warriors 36 | 15
Zebre v Ospreys 37 | 14
Sharks v Stormers 24 | 17
Leinster v Scarlets 38 | 16
Bulls v Rebels 28 | 10
Reds v Chiefs 12 | 36
Crusaders v Sunwolves 33 | 11
Fri, 20 April 2018
Waratahs v Lions 0 | 29
Blues v Highlanders 16 | 34
Sun, 15 April 2018
Saracens v Bath 41 | 6
London Irish v Exeter Chiefs 5 | 45
Sat, 14 April 2018
Leinster v Treviso 15 | 17
Kings v Cardiff Blues 12 | 45
CURRIE CUP
MORE LOGS
Team P W D L Pts
Sharks 12 10 0 2 47
Western Province 12 7 0 5 37
Golden Lions 12 6 0 6 35
Blue Bulls 12 5 0 7 32
Free State Cheetahs 12 6 0 6 31
Pumas 12 4 0 8 27
Griquas 12 4 0 8 26