Phumelela’s Business Rescue Specialist John Evans has published the much anticipated Business Rescue Plan for South Africa’s biggest horseracing operator.
Good news maybe, but the absence of detail in certain aspects is disappointing for those of us expecting more direction.
While the multi-page document contains interesting pieces of data and information on where Phumelela finds itself in relation to its financial affairs and agreed and potentially disputable creditor claims agreed, for those interested and affected persons that were anticipating a document that sets out a plan with definitive amounts and a clear indication of timelines, the document is lacking.
Mr. Evans indicated in his letter addressed to creditors and potential creditors 27 July 2020 that he needed a further extension of the date for the business rescue plan to be published.
He asked that creditors agree to this date being extended to Tuesday, 18 August 2020, on the basis that the request was made for, inter alia, the following reasons:
5.1. to allow time to conclude binding agreements with parties interested in acquiring some or all the assets or businesses or the Company, and
5.2. to publish the business rescue plan which will record and set out the terms of those transactions and estimated outcomes for creditors and shareholders based thereon.
Unfortunately, the Business Rescue Plan that we read today is silent on whether binding agreements were executed at all, and if they were, what the terms are of those binding agreements?
And if binding agreements were not concluded, what were the reasons therefore?
The absence of detail in this regard is concerning against the background of the reasons advanced by Mr. Evans to request an extension to deliver the Business Rescue Plan.
Yesterday late, there was talk of Betfred upping the stakes and local favourite MOD still in the race. So what is the status quo today?
Evans concludes that the implementation of the Plan will result in a better financial return and general outcome to Concurrent Creditor(s) as opposed to a liquidation of the Company.
Over three months down the line, most importantly of all, where does local racing stand?
The Business Rescue Plan will be tabled to creditors for approval on Tuesday 1 September.
