Lifeline after liquidation for EP Rugby Union
The professional arm of the union‚ EP Rugby (Pty) Ltd‚ went into liquidation after months of financial strife in the Eastern Cape High Court (Port Elizabeth) yesterday. A Sport24 report says the cash-strapped EPRU was placed under provisional liquidation on 10 March after failing to resolve its ongoing financial problems, which has seen the union unable to pay players’ salaries.
However, the union will still be able to field a team in the Currie Cup competition, which begins today. SA Rugby‚ which had been courting the Nelson Mandela Bay Municipality (NMB) for several months to come to the aid of the cash-strapped union‚ finally had success with a R20m rescue package announced yesterday hours after the liquidation decision, says a TimesLIVE report.
However, creditors cannot approach the liquidator for payment from the new cash injection provided by the NMB because that money will either be paid to SA Rugby or to a newly-formed company. An amount of R6m has already been budgeted for support towards the union with an additional R14m to follow shortly.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.





