Home News R110.1m paid to creditors while Phumelela Gaming under business rescue

R110.1m paid to creditors while Phumelela Gaming under business rescue

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In August Phumelela received R550m funding from the Oppenheimer family, to ensure that its operations are continuing while the company is being restructured.

Phumelela Gaming and Leisure business rescue practitioner John Evans said yesterday that the company had paid a total of R110.1 million to its creditors in October. Picture: Supplied

DURBAN – Phumelela Gaming and Leisure business rescue practitioner John Evans said yesterday that the company had paid a total of R110.1 million to its creditors in October.

An amount of R27.8m was paid to its secured creditors, while R82.4m was paid to Post Commencement Finance creditors.

Evans published a business rescue update yesterday and said distribution of 12 cents in the rand would now be paid to unsecured creditors whose claims had been submitted, reconciled, adjudicated and accepted. The first payment would be processed today.

“Equalisation distributions will be paid to those creditors whose claims are subsequently submitted, reconciled, adjudicated and accepted. These are scheduled for November 16 and 30 and monthly thereafter,” he said in the report update, while also noting that further distributions would be declared as and when funds were available.

However, the report update states that the distributions would be paid to creditors in accordance with the provisions of the business rescue plan and creditors are required to submit claims in respect of all amounts due to them. “Once received the claims will be reconciled to the company’s records and thereafter adjudicated by the business rescue practitioner,” Evans said.

South Africa’s horse racing and tote betting operator went into business rescue in May after it encountered financial difficulties, partly affected by the withdrawal of the group’s 50 percent share of the 6 percent levy on punters’ winnings on fixed-odds bets on horse racing in Gauteng last year.

The group operates in seven of the nine provinces in the country and was also hurt by the Covid-19 related lock down measures which prevented horse racing to operate in the country.

The proposed business rescue plan was adopted by creditors at the beginning of September.

The business rescue practitioner has continued to implement the business rescue plan, which includes continuing to trade the business and that of its subsidiaries. The business rescue practitioner is also proceeding with the finalisation of the audit of its financial statements for the year to end July and to adjudicate the claims of creditors.

However, Evans said this process was time consuming and was ongoing.

Evans has also entered into agreements for the sale of the Horse Racing business and the sale of Betting World and is engaging with parties who have expressed an interest in acquiring assets of the company.

In August Phumelela received R550m funding from the Oppenheimer family, which is called post-commencement finance, to ensure that its operations are continuing while the company is being restructured, and the sale of the horse racing and betting businesses is concluded.

The business rescue practitioner is holding talks with the JSE regarding the future of the company and continuation or not of its listing.

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