Stormers fans will be able to watch "exciting rugby" at Newlands next year despite the Western Province Rugby Union being granted a final liquidation order for its commercial arm.
That was the assurance from WP president Thelo Wakefield on Tuesday after Western Cape High Court Judge Ashley Binns-Ward made the provisional liquidation order final.
The WP Rugby Union was handed a provisional liquidation order for the company on November 7, but the final liquidation was opposed by one of the creditors, Aerios, which has lodged a claim of around R72 million for a contract it had with WP Rugby (Pty) Ltd to provide services such as wifi, media and other certain commercial rights.
But WP Rugby said in a statement on Tuesday that Aerios's claims that “its opposition (was) based on fraud and an abuse of the court process (by WP) was dismissed by Judge Binns-Ward in his comprehensive judgment".
“Judge Binns-Ward also found that the genuine intention of the union in bringing the liquidation application was in the best interests of Western Province Rugby (Pty) Limited’s creditors.
“Aerios’s defences to the application were dismissed as being unpersuasive, with no substance and even ‘fanciful’.”
Aerios told Independent Media on Tuesday that although the company was “on holiday” until January 9, it would try to provide comment from chief executive Costas Constantinou, but a response had not been forthcoming at the time of going to press.
Chris van Zyl, managing director of Mazars Recovery and Restructuring, is the appointed liquidator who will be responsible for all decisions of WP Rugby (Pty) Ltd until the liquidation process is concluded.
Van Zyl was involved in meetings at Newlands until late on Tuesday and could not comment.
Wakefield was reluctant to speak about the company, as the “liquidator has been given full rights by the Western Cape High Court to deal with matters of the company".
"He is also the man that will make statements on behalf of Western Province (Pty) Ltd."
Wakefield said the liquidator would deal with all questions relating to staff and players, whether creditors would be paid or not, and what the future held for any sponsors or company shareholder Remgro’s involvement.
The union said in a statement that “the liquidators, now duly authorised by the High Court, have taken full control of the business of Western Province Rugby (Pty) Limited and will ensure that the winding-up is proceeded with in the best interests of all of its creditors, employees, players and other stakeholders”.
But Wakefield was clear about the fact that Newlands was not in danger of being sold to pay creditors.
“Newlands is a facility owned by the WP Rugby Football Union. The company never owned any property. All the properties we have are owned by the union, and those properties are all safe,” he said.
“Our supporters will be able to watch rugby (in 2017). They will see exciting rugby. The (local) clubs are affiliated to the union, not the company, and those are matters that we need to deal with once we get there.
“I can only say that we are happy that the claims by Aerios - that we faked insolvency, and that we acted fraudulently - were totally dismissed by the judge, and that he found no substance in their argument.
“We are happy that that is out of the way, that we acted in a professional manner in dealing with these things.”
Weekend Argus reported recently that court papers showed that the WP Rugby (Pty) Ltd’s overdraft facility with its bank was nearly R20m, and that its liabilities exceeded its assets by R12.5m.
The papers also revealed that a “bridging loan” from Remgro Sports Investments - a 24.9 percent shareholder in the WP company - was arranged by WP as a one-off to pay salaries and suppliers.
Wakefield, though, refused to say whether a new company would be formed once the liquidation process was complete, or what the turnaround plan will be.
“I cannot comment on that. I cannot comment on any new company or the old company. We must allow the liquidator to finish his work before I can comment on anything going forward,” he said.
Remgro chief executive Jannie Durand was also not available for comment yesterday.
The Stormers’ first Super Rugby match of 2017 is scheduled for Newlands on February 25. Their opponents will be their traditional rivals, the Bulls.