SA Rugby has fascilitated, and is working on a sponsorship deal with a potential equity partner, worth R80 million to save cash-strapped EP Rugby from liquidation.
It emerged in the PE High Court on Tuesday that a sum of R20 million has already been placed in the trust account of the attorneys representing EP Rugby as an act of good faith.
Tuesday was the return date, by which EP Rugby needed to show why a provisional liquidation order against it should not be made permanent.
The provisional liquidation order was granted two months ago after a group of 36 EP Kings players took EP Rugby to court over the non payment of millions of rands in salaries.
In light of the latest developments, Judge Revelas ordered that EP Rugby's business rescue application be submitted to the court on the 24th of May.
Craig Jessop, representing one of the groups of players, confirmed that they'll then return to court a week later on the 31st of May - for the court to formerly declare either the lifting of the provisional liquidation order - or that it be made permanent.
He told AlgoaFM News that it was a welcome development that there were certain stakeholders who were willing to put their hand up to try and seek a solution to this problem.
"We are prepared to work with them as the group - MyPlayers - in that regard," he said. "However, we're mindful that if the application for business rescue is nothing more than a damp squib, and is just going to prolong the agony, then there is no point. We will certainly approach the situation with an open mind and will take our clients' instruction on the way forward."
