MOD get the nod

MOD have, subject to approval of the business rescue plan to their satisfaction, provided post commencement finance to guarantee a minimum contribution of R550m to the Plan Fund. The contribution will be provided in three equal tranches on:
29 October 2020 29 March 2021
30 November 2021
The above contributions to the Plan Fund effectively provide inter alia Creditors with a minimum distribution from adoption of this business rescue plan that is not contingent on implementation of any sale transaction.
The above contributions and PCF loan is contingent on MOD notifying the company in writing that it is satisfied (in its sole and absolute discretion)
With the power of attorney given in favour of MOD by the Company and/or any other member of the Group in order to enable the MOD to register the general notarial bond and mortgage bonds which form part of the agreed security;
With the written guarantees which form part of the agreed security given by the relevant members of the Group as security for the obligations of the Company under this agreement and the First PCF Agreement;


phumelela.com/Portals/_default/Business%...020-08-18-223532-427

It says the contribution will be provided in three equal tranches but only two tranches have been listed. Does that mean the first tranche will be immediate?

Mac: Oct, Mar and Nov x 3
Tranches (portions)

Basically good news for the locals and our bookies, if the MOD meet above and take over👍

Mac wrote: It says the contribution will be provided in three equal tranches but only two tranches have been listed. Does that mean the first tranche will be immediate?

29 October 2020
29 March 2021
30 November 2021

Hope this helps...

Sorry bad copy n paste

Staff memo looks positive

To: Management and Staff (Phumelela Gaming and Betting World) From: Executive Committee
Date: 19 August 2020
Subject: Business Rescue Plan Update
Dear Colleagues,
The Business Rescue Plan has been issued on Tuesday 18 August 2020. The vote, by creditors, to accept the plan will be held on 01 September 2020. Thereafter, implementation of the plan will proceed.
The main components of the plan are as follows:
•
•
It is intended to continue with trading the operations of the Phumelela Group, although there will still need to be a gradual resumption of some activities due to the effect of the lock-down restrictions.
Offers to purchase the following businesses have been agreed:
o The Horse Racing Business, which comprises:
✓ The main horse racing tracks
✓ The operation of the totalisator together with related retail stores
✓ Fixed-odd betting licences at the race-tracks
✓ The production and distribution of the racing picture/film
✓ The production and distribution of racing data
✓ All the operational equipment required to run the business
✓ All the people required to run the operations and administer the business
o PGI – which is the Group’s offshore gaming business located in the Isle of Man
Once the plan has been accepted on 01 September there will still need to be many regulatory
and other steps to be taken before these businesses will be under new ownership.
• Offers have been received for most other subsidiaries, investments and assets of the Phumelela Group. It is intended to engage with the potential purchasers to achieve sales
agreements at fair value. These assets may be sold together or separately.
Directors: M Tembe (Chairman), K C Khampepe, N J Mboweni, Dr. E Nkosi, J B Walters, S H Müller, S A Mahlalela, F Moloi (Company Secretary)

• When businesses are sold, the employees of those businesses will move with the business on similar terms and conditions as they currently have and no accrued benefits including length of service or retirement savings will be lost.
• The proceeds from all these business and asset sales will be used to pay trade creditors, settle debt and any residue will be paid to shareholders.
• It is likely that the process will take at least a year before it is concluded.
• The listed company, Phumelela Gaming and Leisure Limited will most likely be de-listed
and possibly wound-up at the end of the process.
Assuming that the Business Rescue Plan is accepted, it is unlikely that there will be a need to retrench any employees. As long as we all keep working diligently in the best interests of the business a successful transition of the operations will occur to new owners in time. This could be the start of new opportunities, growth and advancement for many employees.
A key aspect of the proposed Business Rescue Plan is that creditors of Phumelela, as at the date Business Rescue was declared (08 May 2020), will soon start to receive payment. The timing and amount of the payments will depend on which assets are sold and when. However, at a minimum, payments will occur at the end of October 2020, March 2021 and November 2021. The minimum amount to be received by creditors is estimated to be 72cents for every Rand owed to them. It may be that creditors are fully paid and shareholders receive a distribution.
The commitment displayed by most employees in ensuring the successful return to operations over the past few months has been highly appreciated. A continued focus on profitable revenue growth and cost control, ensuring strong cash generation, remains essential to a successful outcome of this difficult process for all. Please continue with your dedicated service.
The business of the Phumelela Group remains under the control of the Business Rescue Practitioner. Day-to-day operations remain under the joint leadership of the Executive Committee consisting of Andrew Langham, Bill Clucas, Dean Sawarjith and Patrick Davis.
Should you have any queries or input, please submit same at pglhr@phumelela.com.
Kind Regards Executive Committee

Offers to purchase ... the horse racing tracks have been agreed. Phew.


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The plan is not a plan for owners but is the “best” plan for creditors and staff.


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A cannie be ersed registering, Sure some of you guys will want to listen.

Dear Bob,

Now that it's legal to cross provincial borders, Jeanette and I are off to the Kingdom (of KZN) tomorrow afternoon for a week's break in the Drakensberg. But only after hosting the Thursday Noontime webinar with two of the driving forces behind the business proposed rescue of Phumelela, SA's horse racing company. Will be back home in good time to host SA surfing great and inspirational teacher Shaun Tomson next Thursday.

Here's the full list of the Biznews webinars for the coming week, complete with registration links:

Thursday, 20 August (noon): Phumelela's Business Rescue Plan - guests Brian Riley (RA Chairman) and Charles Savage (RA director, better known as CEO of Easy Equities) join me to answer questions about the horse racing industry which would alredy have imploded were it not for funding from the Oppenheimer family. Here's the registration link:
attendee.gotowebinar.com/register/7823246642506682640

Should be worth a listen

If we could just get a simple one page explanation of what is actually happening.
Who will be in charge and what the action plan is going forward.

Thank you

how will the RA be funded going forward?
what will happen with Kenilworth racing?
if phumlelela logistics sold or closed will this extra cost of race day transport be passed on to Owner?
when will stakes start returning to 2019 levels?

Dave Scott wrote: Should be worth a listen

If we could just get a simple one page explanation of what is actually happening.
Who will be in charge and what the action plan is going forward.

Thank you

Surely the RA will be finished? there`s no need for them now!