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Phumelela Enters Business Rescue


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Phumelela Gaming and Leisure (PGL) went into Business Rescue May 8, and a Post Commencement Finance (‘PCF’) deal has been agreed to with Mary Oppenheimer Daughters Pty Ltd (‘MOD’), reported Sporting Post. One of the conditions of the deal outlined by MOD was that the PCF Board initiate Business Rescue. Charles Savage was appointed by MOD to act as an intermediary between the two entities. Previously facing bankruptcy (TDN, May 4), the injection of PCF will allow PGL to meet its financial obligations for the duration of the Business Rescue process, including the payment of stakes funds agreed upon with the Racing Association last month.
With the goal of creating a sustainable strategy in South African racing, Savage, along with a team of industry heads and officers, previously backed the creation of a Restructuring Task Team (RTT), instituted to work with PGL to safeguard, re-capitalize and restructure the racing industry.
“It must be stressed that the opportunity will be short-lived and will rely on all stakeholders having to make significant compromises,” said a spokesperson for RTT. “Government will be a crucial stakeholder in the future of racing, and while there has been positive engagement, a lot of work remains.
“We have been able to ensure payment of stakes, albeit reduced, for the foreseeable future. The RTT will communicate with all stakeholders as and when we are able to do so.”

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The post Phumelela Enters Business Rescue appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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