John Evans responds to GC press release

  • Bob Brogan
  • Bob Brogan's Avatar Topic Author
  • Administrator
  • Administrator
  • Posts: 81215
  • Thanks: 6270

John Evans responds to GC press release

3 years 4 months ago
#814080
RE: PHUMELELA GAMING & LEISURE LIMITED (IN BUSINESS RESCUE) AND GOLD CIRCLE

A letter dated 05 March 2021 circulated by Gold Circle to its members has been brought to the attention of Phumelela Gaming and Leisure (Pty) Ltd (in Business Rescue).

The letter contains factual inaccuracies. The inaccuracies will be dealt with during the dispute resolution proceedings and Phumelela are deliberately omitting from responding thereto in any other forum.

With regard to creditors’ claims:

1. the business rescue practitioner has treated all creditors equally and fairly;

2. in the process of proving claims creditors were invited to submit their claims to the business rescue practitioner for adjudication;

3. where adequate information was provided and accords with Phumelela’s records and the BRP’s investigations, these claims are admitted without further ado;

4. where claims are inadequate and do not tie up with Phumelela’s records and/or the BRP’s investigations, the BRP calls for additional information to try and reconcile and/or resolve the claims, all with a view to reaching finality thereon;

5. all accepted claims receive and will receive dividends as and when declared;

6. claims that do not tie up with Phumelela’s records and the BRP’s investigations are then rejected;
Applying this process, the business rescue practitioner thoroughly investigated Gold Circle’s monetary claim and engaged with them about the monetary claim and their claim to own 39% of the issued share capital of Phumelela’s offshore subsidiary. These investigations revealed that both claims were factually and legally incapable of acceptance.

Phumelela’s business rescue practitioner engaged Gold Circle further. At the conclusion of these engagements both claims were then rejected on 16 February 2021.


Page |2

In this regard Phumelela and its business rescue practitioner were also assisted and advised by
their legal team.

Phumelela has per its records at date of commencement of business rescue, a substantial claim against Gold Circle.

At a time Phumelela endeavored to engage with Gold Circle to reserve Phumelela’s claim and resume monthly settlements with Gold Circle but its offer was never acknowledged.

Affected Parties will continue to be regularly apprised of developments pertaining to the implementation of Phumelela’s business rescue plan.

These reports are published at month-end and circulated to all Affected Parties.

They may also be found under the business rescue tab on www.phumelela.com .

Progress reports regarding the dispute resolution process with Gold Circle will form part of these monthly reports.

Yours sincerely
John Evans
Business Rescue Practitioner

Please Log in or Create an account to join the conversation.

  • Dave Scott
  • Dave Scott's Avatar
  • Administrator
  • Administrator
  • Posts: 42546
  • Thanks: 3048

Re: John Evans responds to GC press release

3 years 4 months ago
#814085
OUCH !

Obviously a couple of sides to every story but this one is very interesting and damaging.

Please Log in or Create an account to join the conversation.

  • Black Arthur
  • Black Arthur's Avatar
  • Junior Member
  • Junior Member
  • Posts: 39
  • Thanks: 4

Re: John Evans responds to GC press release

3 years 4 months ago
#814124
Should the Gold Circle Board survive this debacle?

Please Log in or Create an account to join the conversation.

  • Craig Eudey
  • Craig Eudey's Avatar
  • Platinum Member
  • Platinum Member
  • Posts: 4555
  • Thanks: 554

Re: John Evans responds to GC press release

3 years 4 months ago
#814131
I am pretty sure that this board inherited what now looks like it could be a problem from a previous board. This arrangement with Phumelela has been going on for quite awhile now. Surely if GC have been paid all this time by Phumelela ( before they got into this trouble) it must mean something in court when they get there. Why would they have been paying GC all that time if there was no agreement in the first place?:S
The following user(s) said Thank You: mr hawaii

Please Log in or Create an account to join the conversation.

  • LSU
  • LSU's Avatar
  • Premium Member
  • Premium Member
  • Posts: 567
  • Thanks: 145

Re: John Evans responds to GC press release

3 years 4 months ago
#814157
The question should not be why they were paying GC but why they should continue paying them. The answer is simple, good faith and best for racing in SA over the longer term. Legally I cannot see them having an obligation even though the monthly payments reflect some sort of arrangement. The fly in the ointment is that the arrangement was between Phumelela and Gold Circle and not with the new entity.
I however see sanity and fair play prevailing in the interest of a united front for racing and this being settled out of court rather than enriching lawyers at the expense of racing.
Will the split remain the same or are we going to see a percentage shift in future? Should be interesting to see how this will play out as the future of racing could be badly dented if handled poorly.

Please Log in or Create an account to join the conversation.

  • Felix
  • Felix's Avatar
  • Elite Member
  • Elite Member
  • Posts: 1129
  • Thanks: 304

Re: John Evans responds to GC press release

3 years 4 months ago
#814169
Remember,the longer Evans can delay the process,the more he benefits in fees,so his holier then thou attitude extends to his self enrichment too

Please Log in or Create an account to join the conversation.

Time to create page: 0.351 seconds