Newlands used as security for WPRU’s debt?
Cape Town - It is believed that Newlands has been used as security for the Western Province Rugby Union’s outstanding debts.
The WPRU owes investment company Remgro an amount believed to be about R44 million and the Stellenbosch-based company recently announced plans to seize property belonging to the WPRU if the union did not pay back a loan by last Friday (July 6).
According to reports, the WPRU failed to pay back the loan and instead registered a mortgage bond on one of its prime properties as security.
Remgro CEO Jannie Durand confirmed to Netwerk24 that the bond registration was provided on deadline.
Durand refrained from disclosing which property was used as security but both Netwerk24 and Rugby365 are reporting that it was Newlands rugby stadium.
Western Province’s clubs initially clubs voted against putting up the stadium as security, but the union's officials were left with no alternative when the deadline came last Friday.
Remgro came to the WPRU’s rescue when it was set to be liquidated at the end of 2016.
WP's business arm was placed in final liquidation by the Western Cape High court in 2016 after the union was slapped with an R276 million lawsuit by Aerios for reneging on an advertising rights contract with the company.
Aerios recently confirmed it would challenge the WP’s liquidation in court while it planned to proceed with suing the union for breach of contract.