A promise of R80-million has been made to the Eastern Province Rugby Union (EPRU) to help the troubled side rise above their financial woes.
The EPRU have applied to the Port Elizabeth High Court for business rescue after the court postponed the proceedings until May 31, according to the HeraldLIVE website.
The administrators and role players were however silent about where this massive cash injection is orginating from.
EPRU president Cheeky Watson 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 the Companies Act.
He said of these funds, R20 million had already been paid into the bank account of EPRU’s attorney, Paul Bester, with the rest to be paid over the remainder of the Super Rugby season.
Watson said in an affidavit that EPRU’s administrator, the SA Rugby Union (SARU), had secured a prospective investor who was willing to grant post-commencement finance to EPRU in terms of Section 135 of the Companies Act.
CEO at EP Rugby Pty Ltd, Debbie Ellis not only confirmed that the postponement was granted but also the transfer of the R20-million over to the EPRU's lawyer.
"EP Rugby can confirm that the matter of the liquidation application of the EP Rugby Pty Ltd was postponed to May 31 in the High Court on Tuesday," Ellis said.
"Further, as mentioned in court, there is a potential equity partner that is currently considering securing a shareholding in EP Rugby, and who has made an amount of R20 million available as an act of good faith.
"This funding is being held in the attorneys trust account and is subject to the implementation of a business rescue plan.
"We cannot provide further details at this time."