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Aerios on the 'offensive' again

Aerios on the 'offensive' again

NEW BATTLEGROUND: There may be temporary relief for the embattled Stormers – at least on the playing field – but in the boardroom, the pressure is mounting.

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As the struggling Cape Town outfit heads into Super Rugby’s break, the boardroom battle between advertising company Aerios (Pty) Ltd, and Western Province Rugby (Pty) Ltd – the parent company for the Stormers – had its first round in the courts.

Aerios believes it will be able to prove – in court – its claim for damages against WP Rugby.

Aerios is claiming that it has suffered damages in the sum of approximately ZAR250-million, as a result of the decision taken by the liquidators of WP Rugby to determine the advertising rights agreements which had been concluded with Aerios.

The first round of the battle, a pre-trial hearing, took place in the Western Cape High Court last Thursday.

Costas Constantinou, the Managing Director of Aerios, stated that he was surprised that the liquidators have refused to concede that Aerios suffered damages due to the determination of their advertising rights agreements, particularly since one of the liquidators, Chris van Zyl of Mazars, had previously deposed to an Affidavit in which he acknowledged that damages would be suffered by those parties whose contracts with WP Rugby were to be determined.

“It seems to me that the liquidators are concerned that Aerios will have the largest proven claim against WP Rugby, once our damages claim has been proven by the High Court, giving Aerios far greater control over the resolutions which are to be passed by the creditors of WP Rugby,” Constantinou said.

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“The liquidators appear to be concerned that Aerios may call upon the liquidators to take steps which may be adverse to the interests of the other creditors – whose claims against WP Rugby have been approved by the liquidators, including the union [WP Rugby Union] and Remgro Sports Investments (Pty) Ltd.”

Aerios contends that the primary motivation for the liquidation of WP Rugby was to terminate the advertising rights agreements which it had held.

Aerios intends to institute a further claim for damages against the Union, RSI, the liquidators and the directors of WP Rugby arising from their conduct in liquidating WP Rugby and in transferring the business of WP Rugby to its new operating company later this year.

“Many startling revelations will be made during the conduct of those proceedings,” Constantinou said.

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