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Hopes For Racing Show To Get On The Road!

Extension on operator's Business Rescue Plan

What a lovely sight that we once took for granted! (Pic – Candiese Lenferna)

Despite optimism from some quarters after Sunday evening’s national address by President Cyril Ramaphosa, the NHA has confirmed that there is as yet no confirmation from Government that racing will proceed any time soon.

But the Sporting Post has had site of the draft level 3 regulations today (Tuesday) which indicate a definite flicker of hope for racing in that professional non-contact sports matches are permitted with limited support personnel.

The still to be gazetted regulations also refer to the opening of venues for  training of professional athletes and professional non-contact sports matches.

Meanwhile, the Daily Maverick has reported that Phumelela Business Rescue Specialist John  Evans held the first meeting with Phumelela creditors last Friday.

This is required by the Companies Act 10 days after his appointment as the business rescue practitioner.

At the meeting, he told creditors, who have claims of about R700-million (early estimates) against Phumelela, that the company has reasonable prospects of rescue.

This is because Phumelela’s suppliers have agreed to continue supplying the company while it’s being restructured.

A business rescue plan was meant to be published on 15 June but Evans has asked for an extension to 31 August because Phumelela is a “complex business and a review [of its operations] will take some time”.

Creditors are yet to formally vote on whether the plan’s publication should be extended.

The business rescue proceedings cannot be protracted because the R100-million lifeline, which was thrown to Phumelela by the Oppenheimer family to stabilise the company, could be depleted within “three to six months”, according to Evans.

Of the R100-million from Mary Oppenheimer Daughters, the family office for Mary Slack, daughter of the late mining magnate Harry Oppenheimer, Evans and his team has drawn down R20-million to fund Phumelela operations.

The next drawdown will be in July.

The grant has not prevented Phumelela from furloughing about 85% of its 1600-strong workforce from May because the company is not generating revenue.

  • www.dailymaverick.co.za  – additional reporting by SP Editorial Staff

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8 comments on “Hopes For Racing Show To Get On The Road!

  1. Jack Swarts says:

    It will be interesting to see if the unpaid Phumelela workers will come to work, if and when racing starts up. What happens if they decide not to go back to work??

  2. Boete says:

    Only for Mrs Zuma to intervene and racing will not happen

  3. Helena says:

    Im one of those workers
    We will go back,simply because we dont have a choice.
    There are no other jobs out there.
    Whether Phumelela will survive im not sure.
    Poor decisions at management level have led to the company,s demise.
    It will take a miracle,but we are hopeful.

  4. Cecil Pienaar says:

    Lovely picture of a beautiful racecourse…. I reckon we’ll get the Green light by Friday as per the draft report 👍

    1. Editor says:

      Hope you are right, Cecil

  5. jai says:

    wait for the all clear

  6. Richard says:

    How on earth can Phumelela manage to be in debt to the tune of R700m? What sort of management runs up those sorts of debts, other than SAA, Escom etc

  7. WILLIAM MILKOVITCH says:

    Richard, now contrast this debt to the cost of the acquisition of some of Phumelela’s racecourses, as reported in the Public Protectors Report and Phindi Kema’s initial complaint.

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