Lions and Guma Tac settle

2012-05-03 11:42
Robert Gumede (Gallo)

Johannesburg - A former potential equity partner of the Golden Lions Rugby Union (GLRU) has reportedly reached an out-of-court settlement with the provincial rugby body.

Acting GLRU CEO Ruben Moggee told The Times on Thursday that the Guma Tac Group had withdrawn an application to liquidate the union.

Moggee told the newspaper he could not comment on the settlement amount.

"Unfortunately, because it was an out-of-court settlement, I cannot divulge what that figure was. Both parties have to agree before that kind of information is made public."

Guma Tac filed papers in the High Court in Johannesburg in January to the effect that the GLRU was "hopelessly insolvent, both factually and commercially".

Jointly-owned by Robert Gumede and Ivor Ichikowitz, Guma Tac cut ties with the GLRU in June 2011, shortly before it was to have purchased a 49.9 percent stake in the union.

The former potential equity partners claimed in the court papers that the GLRU owed Guma Tac in excess of R8 million and Ichikowitz more than R2m.

GLRU president Kevin de Klerk said in January the court papers were "filled with many half truths" and said the union had not been unwilling to pay back any money.

He also denied claims of bankruptcy, after the union allegedly struggled to pay players' salaries.

Read more on:    lions  |  rugby


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