Port Elizabeth - The Eastern Province Rugby Union on Thursday confirmed
that a provisional liquidation order has been granted by Judge Eksteen in the
Port Elizabeth High Court.
The provisional court order means EP Rugby Pty Ltd has until
May 10 to address the current financial challenges being faced.
“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 the 8th of April this year,” the
union commented via a press statement.
“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 the 25th of 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 stakeholder on this matter.”
The EP Rugby Union was plunged into a financial crisis last
year, with the union unable to pay players’ salaries.
President Cheeky Watson had promised a R200m sponsorship for
the Kings but this failed to materialise, with players forced to accept food
vouchers following the non-payment of salaries.
It led to SARU stepping in to take control of the union’s
Super Rugby franchise, the Southern Kings.