Professional rugby players from Eastern Province Rugby say that they need to time to study a business rescue application which was filed at the Port Elizabeth High court last week.
Lawyer, Craig Jessop, who represents some of the players, told the African News Agency (ANA) 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 provisonally liquidated union from final liquidation.
In a letter the company confirmed its intention to invest R20 million per annum for the next five years.
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.
“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.
He said that there would be no further comment with regards to the viability of the business rescue application.
The matter is set to continue at the Port Elizabeth High Court on Tuesday.
Lawyers are expected to ask for a lengthy postponement in order to study the business rescue application.
– African News Agency (ANA)
