PORT ELIZABETH, May 31 (ANA) – Professional rugby players from Eastern Province Rugby (EPRU) will have until the end of next month to file answering papers if any, in a liquidation application lodged at the Port Elizabeth High Court.
On Tuesday an application for business rescue for the provisionally liquidated union was postponed by agreement until August 4.
Lawyer, Craig Jessop, who represents some of the players, told African News Agency (ANA) earlier this week, that the players needed a proper opportunity to consider the contents of the business rescue application.
“Players need certain information regarding their contracts and certain allegations require further investigation. At this stage they are not in a position to make an informed decision,” said Jessop.
It was revealed last week that an investment group from the United Kingdom, Integrated Sport, planned to save the provisionally liquidated union from final liquidation.
In a letter the company confirmed its intention to invest R20 million per annum for the next five years.
Court papers also revealed how over a long time, the Kings plummeted into debt involving millions of rand.
The rugby union wants the players to abandon the application for final liquidation and agree for EPRU to be placed under business rescue.
The liquidation application was filed in January and initially saw 18 professional rugby players claim that the EP Kings owed them close on R1.3 million in salary arrears.
Subsequently, a further 18 players joined the application as intervening creditors, claiming that EP Kings were in breach of an arbitration ruling awarding them R18 million in respect of salary arrears and other benefits.
The players, together with the SA Rugby Players’ Association (Sarpa), asked the court to liquidate the EP Kings as a result of them being unable to pay their debts. A provisional liquidation order was made at the Port Elizabeth High court earlier in March.
“The purported plan does not disclose origin of sufficient funding to pay day-to-day operating expenses of EP Rugby. In addition, the appointed provisional liquidator, despite requests, has not been placed in possession of financial records of the company in liquidation so he cannot evaluate its financial position,” said Jessop.
-African News Agency (ANA)
