Kings' ZAR20m rescue plan
It was revealed that EP Rugby had been given ZAR20-million as part of a business rescue plan.
However, the source of the cash and the purpose of the handout has not been confirmed yet.
The South African Rugby Players Association confirmed that they will hold off their liquidation application for another three weeks
"Although the interests of our members are primary, the players’ organisation has throughout maintained a constructive role to support rugby in the Eastern Cape," said Eugene Henning, Managing Director at MyPlayers, the body looking after the players' commercial rights.
"We will remain supportive of activities which aim to provide a long term solution to rugby in this region and are cautious of measures offering short term ones.
"With the information at our disposal we cannot determine whether the funding currently with the attorney is that of a long term nature or is repayable or callable on demand.
"It might be necessary for the court to understand the source of the funds and whether any conditions are set pertaining to the making available thereof. In this regard we will have to consider the proposed business application and ultimately rely on the court to determine the long term nature of what is presented as a solution", Henning concluded.
Debbie Ellis, Chief Operations Officer at EP Rugby Pty Ltd, confirmed the latest development.
"EP Rugby can confirm that the matter of the liquidation application of the EP Rugby Pty Ltd was postponed to 31st of May in the High Court today [Tuesday]," said Ellis.
"Further, as mentioned in court, there is a potential equity partner that is currently considering securing a shareholding in EP Rugby, and who has made an amount of ZAR20-million available as an act of good faith.
"This funding is being held in the attorneys trust account and is subject to the implementation of a business rescue plan.
"We cannot provide further details at this time."
