The Eastern Province Rugby Union (EPRU) was liquidated in the Port Elizabeth High Court on Thursday, according to South African media reports.
The financially stricken union was initially placed under provisional liquidation in March when they failed to resolve their cash issues, which has resulted in them owing their debtors millions of rands.
The PE High Court initially heard liquidation proceedings on behalf of 36 players and EP Rugby (Pty) Ltd was then given until 10 May to settle the outstanding debts or face the prospect of the order becoming final.
EPRU president Cheeky Watson then said in an affidavit that EPRU’s administrator, the SA Rugby Union, had secured a prospective investor who was willing to grant finance to EPRU in terms of Section 135 of South Africa's Companies Act.
Court proceedings were then postponed until 4 August to allow the concerned parties sufficient time to study the proposal.
Doubts were raised, however, over the credibility of the proposed investor, and the business rescue plan was subsequently withdrawn.
The matter returned to the PE High Court on Thursday and the provisional liquidation order was made final, with the next step being the recovery of owed debts.
Craig Jessop, the lawyer who represented a number of the players who brought the original application, confirmed that a liquidator is set to intervene in order to wrap up the matter.
"The players are satisfied that liquidation has been finalised and the next phase is now to look at the recovery of the money owed," he told SA Rugby Mag.
"A liquidator will take over affairs and will look to act in the best interests of the creditors. We will now work closely with the liquidator in this regard."