Eastern Province Rugby has been placed under provisional liquidation following a ruling issued by the Port Elizabeth High Court on Thursday.
The High Court ruled in favour of an application of a group of somewhat 36 players, that took legal action against the union for not paying their salaries, dating back as far as September 2015.
The Union will have until 10 May this year to settle the outstanding debts, which has been believed to be millions of rands. Should they fail to rectify the outstanding amount this ruling could move from provisional to final.
SA Rugby has taken over the administration of the union since last November, however, after numerous attempts to secure sponsorships and investors EP Rugby's woeful financial situation remains unchanged.
In a statement release by the EP Rugby it stated the following: "It is important to note that the provisional liquidation does not impact on the day to day operations of the Pty Ltd in any way,"
"This means that EP Rugby Pty Ltd will continue with our preparations for the upcoming Currie Cup tournament that begins on 8 April.
"Further, it should be noted that the EP Rugby Union executive have been given a mandate by the clubs during the special general meeting on 25 February to seek business rescue in order to stabilise the financial circumstances of the union.
"We are currently engaging with our legal advisors as well as with SA Rugby, government and other stakeholders on this matter."