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WP Rugby Taken to Court Over Loan

Dreamworld Investments has filed papers in the Western Cape High Court to recover a loan made to Western Province Rugby.

The loan is worth in excess of R112 million.

Dreamworld Investments is an associate company of Flyt Property Investment within the Flyt Group. In June last year, Dreamworld lent the WPRFU R112m in order to service existing debts after the union decided to walk away from two deals with Remgro and Investec.

At the time, WPRFU President Zelt Marais described the deal as ‘the deal of the century’. By the end of 2020, however, the WPRFU had reneged on a third signed agreement.

Speaking to rugby365, Flyt Property Investment CEO Zane de Decker confirmed that Dreamworld was going to court to recover the loan. The claim is reportedly for the initial loan of R112m, in addition to any interest accruing (estimated to be almost R3m already) and damages totalling R30m.

De Decker confirmed that Flyt may also elect to take legal action.

The Flyt Group holds bonds over many of WPRFU properties as security against the loan. This places the union in a vulnerable position should judgment be made against it with the union unable to service its debts.

Marais confirmed he was aware of the court summons, but that an official statement would be made in due course.

Sport Industry Group
Sport Industry Group

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