News24.com | Phumelela extends date for publication of business rescue plan
The insolvency practitioner for ailing horse racing and betting company, Phumelela Gaming & Leisure [JSE:PHM], has been granted a six-week extension to publish its business rescue plan. The plan, initially due on June 15, is now set to be published on July 31, the company said in a statement on Monday. In early May the group announced it had entered voluntary business rescue due to severe financial pressure caused by the suspension of horse races since the implementation of the Covid-19 lockdown. The entity has since received post commencement funding of R100 million from Mary Oppenheimer Daughters, a family fund led by the daughter of the late mining magnate Harry Oppenheimer. The money is set to be used to stabilise the company’s finances during the business rescue process led by John Evan.The suspension of racing events during the lockdown period severely impacted Phumelela’s already weak business, which had seen income plummet over the past few years.Horse racing events have since been allowed to resume after the government relaxed restrictions for professional non-contact sport from June 1. Events are allowed to take place under strict Covid-19 health and safety regulations.Phumela’s business rescue process was followed by the resignation of its CEO John Stuart on May 15.
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