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FEATURED

WP Rugby denies creditors closing in and bankruptcy claims

PUBLISHED: June 8, 2018



WP Rugby dismissed the allegations made in the Rugby365 article titled “Creditors closing in on bankrupt WP”, as unfounded and inflammatory, with many of the statements portrayed in the article as fact, being either misleading, factually incorrect, or speculative.

WP Rugby can confirm that former WP Rugby (Pty) Ltd shareholder Remgro has not recalled their loans and that WP Rugby is in regular contact with Remgro with regard to its outstanding indebtedness to Remgro.

WPRFU owns a number of unencumbered (debt free) high value property assets. Part of WP Rugby’s turnaround strategy is the development of those property assets to ensure significant residual income streams for the Union in perpetuity. Using a part of the property portfolio to secure the loans remains an option.

In addition, WP Rugby can confirm that it is in discussions with a potential equity investor with regards to the sale of a stake of less than 50% in the commercial arm of WP Rugby. No part of this potential equity deal requires the removal of the current CEO or President, with both having the full backing of the Board and the Executive.

WP Rugby strongly denies that it is facing bankruptcy, that its creditors are “closing in”, or that either the securing of the Remgro loan or the potential sale of equity in the commercial arm will have any impact on the contracting of players, a process that is well underway, with the bulk of its high profile athletes already under contract.

WP Rugby also wishes to clarify that the Aerios claim for damages it allegedly suffered, is against the Liquidated Company and is being dealt with by the Liquidators.