The Nelson Mandela Mandela Bay council has agreed to a R15-million bailout to help cover EP Rugby’s liquidation costs. CRAIG LEWIS reports.
The cash-strapped Eastern Province Rugby Union was officially liquidated in the Port Elizabeth High Court in August last year, with the EPRU’s affairs having been placed into the administrative control of SA Rugby in April 2016.
SA Rugby continued to work in the background to draft a new plan for the administration of the union, with the adoption of a new constitution and executive structure eventually taking place, which led to new elections for office bearers.
Meanwhile, the liquidation of EP Rugby (Pty) Ltd – the commercial arm of the EPRU – continued in parallel, but it was hoped that the pathway had been cleared for a recapitalisation plan to move ahead with interested local parties.
In April this year, highly respected businessman André Rademan was voted in as the new EP Rugby president as the final steps were put in place for the EPRU administration to return to local hands.
Now, in a massive boost for EP Rugby, the council on Tuesday approved the multi-million rand bailout plan.
‘It’s really good news,’ an elated Rademan told SARugbymag.co.za on Wednesday. ‘This will really put the union on a different path. We’d like to thank council for their goodwill, and now we need to go and sit around the table, address the various stakeholders, and work out the best way forward from here.’
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