South Africa’s largest horse racing operator, Phumelela Gaming and Leisure, said today, it was facing bankruptcy.
Phumelela said it had suffered losses of R115. 1 million for the six months ended January, compared to the R61.4 million loss it reported at the same time last year.
The six months results do not cover the COVID-19 lockdown period which has seen the company’s operations severely impacted.
The company said it is operating under onerous conditions, much of which is beyond its influence.
“The Group remains engaged in discussions aimed at raising capital. Should these discussions not prove conclusive soon, the board will have to decide on whether there is any reasonable prospect that the Group’s business can be rescued, or whether to make application for voluntary liquidation,” said Phumelela.
“The board’s current view is that even if financial relief can be obtained, a relief package should be negotiated as part of a business rescue plan. The board will make an announcement in this regard in the near future.”
