Phumelela Financial Updates: Payments to Creditors Surpass ZAR208.3 Million

The business entered into business rescue, a form of bankruptcy protection, in May. Betfred, a British operator, offered to take over the company for ZAR925m. However, the creditors opted for the rescue plan proposed by Mary Oppenheimer Daughters. As part of the plan, all of Phumelela’s assets were put up for sale to repay the creditors. Phumelela has already paid ZAR111.9m to secured creditors, Investec and Rand Merchant Bank. It also paid ZAR14.2m to unsecured creditors and ZAR82.3m in post-commencement finance to Mary Oppenheimer Daughters. The total amount to be paid to potential creditors is still uncertain, as claims are still being adjudicated by Evans. According to the plan, Phumelela will pay 100% of its debts (ZAR403m) to Rand Merchant Bank, Investec, and Mary Oppenheimer and Daughters, plus 72% of the remaining valid claims. Creditors who have not yet submitted their claims may apply for an equalization distribution of 12 cents per Rand owed. The distribution payments will begin on 26 February and will be monthly.