Investor bails out of EP Rugby
Saru in race to find new sponsor to avoid liquidation The beleaguered Eastern Province Rugby Union (EPRU) will be liquidated next week if SA Rugby fails to find a new investor.
The SA Rugby Union (Saru) announced yesterday that the mystery investor who had wanted to buy a 49% stake in EPRU had pulled out of the business rescue plan. Saru chief executive Jurie Roux said: “The course we hoped to pursue has now been closed and we will have to await the final court order.” If Saru fails to find a new investor, the application to have EPRU finally liquidated will proceed in the Port Elizabeth High Court on Thursday next week. Roux said a joint decision had been taken after the investor informed Saru it wished to withdraw as there were certain conditions it was reluctant to meet. He said Saru’s focus remained on ensuring that the EP Kings were able to fully participate in their rugby commitments. “We will work with the liquidator in finding solutions for rugby in the region,” Roux said. It is believed that Saru is on the hunt to secure a new investor before next week. EPRU owns the EP Kings, who are scheduled to play in the Currie Cup Premier Division in three weeks time. The Southern Kings are already under the control of Saru and are expected to take part in Super Rugby again next year. Asked about the business rescue withdrawal yesterday, EPRU president Cheeky Watson said: “Saru has been in charge. I will leave all press releases to them.” Craig Jessop, the lawyer for the majority of the EP Kings players who took EPRU to court with hopes of having it liquidated, confirmed yesterday he had received notice abandoning the application for business rescue. “In addition, we were notified that our application for liquidation would proceed on August 4 on an unopposed basis,” he said. EPRU was taken to court by 36 professional rugby players for failing to pay their salaries, among other debts.
The liquidation application, filed with the Port Elizabeth High Court on January 29, initially saw 18 players highlight their plight with claims that the EP Kings owed them close to R1.3-million in salary arrears. Their case was bolstered in February when a further 18 players joined the application as intervening creditors. Former EP Kings captain Ronnie Cooke, who became the face of the players involved in the liquidation application, said yesterday he had been advised by his lawyers not to comment. Christopher Wishlade, of Integrated Sport, had emerged in court papers two months ago as the mystery equity partner managing a deal to acquire the 49% stake in the EP Kings, with a much-needed cash injection of R100-million. But The Herald revealed last month that Wishlade was a bankrupt businessman with an unregistered UK firm and false business address. An investigation by the newspaper showed that Wishlade was declared bankrupt in June 2010 and again in April last year, and that a company he formed in 2005 had been liquidated two years later, with 11 creditors owed about R3-million. Wishlade took The Herald to the Press Council of South Africa on June 27, arguing that the article and headline published on June 14 was “not accurate and damaging”. But Press Ombudsman Johan Retief dismissed the complaint. “I conclude that the newspaper was justified in its reportage based on the information it had at the time of publication,” Retief said. Asked to comment on the withdrawal of the investor yesterday, Wishlade said: “Your audacity astounds me. First you attempt to defame me and discredit our plans, and now you want me to comment? Sorry, I have nothing to add.” If EPRU is liquidated, it could spell the end of professional rugby in the province and would also be damaging to the amateur wing. In addition, if the union is liquidated and its assets sold off, it would realise just R69 000. EPRU’s debts have been calculated at R58-million and are forecast to climb a further R14-million by the end of the year.
