Re:Why are people not talking about Phumelela folding tomorrow?

Phumelela in talks to raise funds after horse racing collapse
08:14 05/05/2020 Janice Kew and Loni Prinsloo

Phumelela Gaming and Leisure is in talks to raise R300 million to stave off collapse as measures to contain the coronavirus curtail horse-racing and other sporting events, according to people familiar with the matter.

Talks with a capital provider and banks are underway to salvage at least part of the business, said the people, who asked not to be identified as the details of the terms are private. The Johannesburg-based company has been unable to stage events since the government banned all large gatherings in mid-March.


If Phumelela can’t raise the money, the board will have to decide "whether there is any reasonable prospect that the group’s business can be rescued, or whether to make application for voluntary liquidation," the group said in a statement on Monday.

Efforts to reach the company for comment on the 300-million rand target went unanswered.


Phumelela isn’t alone in facing the prospect of liquidation due to the coronavirus crisis. Edcon Holdings last week filed for administration after the country's second-largest clothing retailer lost R2 billion in sales and failed to pay suppliers as a result of a five-week strict lockdown.

Companies with high debt levels are taking the most strain. Phumelela’s net debt-to-equity ratio, including lease assets, is at 38%, it said in the statement.

Phumelela, which used to count former Steinhoff's Chief Executive Offiicer Markus Jooste as a director and one of its largest shareholders, had already started cutting jobs amid a horse-racing industry slump

I was under the impression that Mary Slack was coming to rescue them!!

flaunt wrote: To make it clear , my rant was blanket , not aimed at anyone .
In terms of business rescue the share would trade unless the directors applied to the JSE to have it suspended . Basil read etc did the same as did Aveng. Many other companies that were in search of a rescue also traded one of which was PPC and the other was CIL.
Liquidation is a different matter , the share would ultimately be suspended . You would however be able to trade off market in the case of one being short and wanting to square their position. Phumelela I dont believe is at these stages yet , at least definitely not liquidation. Ultimately I believe wholeheartedly that the business has been pathetically run . Racing can work in this country in a different format . I have done some workings that tell me according to what I feel should be done I could see a maiden plate at 300 k first prize in 6 months . Where I see the problems is that many people have their view and many agendas so not sure how long things take ... that’s the ultimate risk !

J I'm with you there exactly, as long as properly managed under a new funding model with the right people.

What I don't get is all this secrecy or is it that they are too ashamed to be named for passing around the begging bowl?

RA Stranger wrote: What I don't get is all this secrecy or is it that they are too ashamed to be named for passing around the begging bowl?

These are the types of comments that actually don’t deserve a reply .. but let me help you . Phumelela is a public company , it is governed by the rules of the JSE and trading in it would be subject to JSE rules as well as FAIS directives . It is under cautionary hence nothing is public . Do companies that you know whether public or limited entities bring the public into their domain of the deals they doing ? Just checking

The interesting line in the statement for me is the part about deciding which part of the business could be rescued. We know that sports betting is the current viable part and management preferred and racing carries the weight in terms of sustaining more jobs but are mostly hated by the elect.
I guess it will ultimately depend on who comes forward to attempt or support a rescue and what mandate will be pursued.

Can anyone substantiate the rumour that Kenilworth Racing staff were laid off yesterday???

Magi wrote: Can anyone substantiate the rumour that Kenilworth Racing staff were laid off yesterday???

Would imagine it could be possible, they have no income!

Eish... hardship everywhere.. negativity abounds and justifiably so but those that survive will really blossom..... the new world order is already coming through......

Take a look at this video on YouTube:

Judy Mikovits

hardly a credible source

qz.com/595909/why-bad-science-wont-ever-die/

en.wikipedia.org/wiki/Judy_Mikovits

www.snopes.com/fact-check/scientist-vaccine-jailed/

We need lockdown not because the virus KILLS we need lockdown because of its rate of spread and the effect that will have on everyday life and most certainly the medical world.

don't trust fake news rotflmao

Phumelela Gaming and Leisure Limited
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06 May, 13:59 SAST · Disclaimer