After it has become known that Phumelela Gaming and Leisure has been placed under business rescue proceedings in terms of Chapter 6 of the Companies Act, the Oppenheimers have stepped in with a R100-million cash injection in order to stabilise the industry.
The R100-m funding by the Mary Oppenheimer daughters was made known on May 11 to keep the company afloat while it goes through business rescue.
This will give them leverage while the racing industry is on lockdown due to the Covid-19 pandemic.
“This is not an attempt to save Phumelela as a company or an attempt to invest in Phumelela. It is a critical in ensuring the sustainability of the industry as a whole,” said Wehann Smith, director of Racing Association.
“It puts Phumelela in a safe space for about six months or so.”
Horseracing and the Oppenheimer family span over many decades in the country and will most probably be in the future as well, owing to the fact that they have bred and owned top winners over these years.
On May 8, Phumelela Gaming and Leisure announced that they have entered into voluntary business rescue.
Horseracing could not take place on all the major tracks due to Covid-19.
The industry still under level four lockdown and operations are still closed and will remain so until it moves up the ladder.
Some 60 000 working in the industry have been affected, which includes breeders, grooms and jockeys.
“The lockdown was the final nail,” said Smith, who is also part of a task team mandated by the Mary Oppenheimer daughters to engage with Phumelela.
In April, the Mary Oppenheimer daughters made available R1-billion in donations to the Solidarity Fund aimed at fighting the coronavirus pandemic in South Africa.
Phumelela appointed John Evans CA (SA) of RS Advisors when it was placed under business rescue.
