Lions make peace with Gumede and co
3 May 2012
The Lions have reached an out-of-court settlement deal with former potential equity partners the Guma Tac Group.
Robert Gumede and Ivor Ichikowitz’s Guma Tac Group issued an application to liquidate the Golden Lions Rugby Union (GLRU) after their partnership was officially terminated in January, shortly before the company aimed to purchase a 49.9% stake in the union.
The former believed the GLRU was ‘hopelessly insolvent, both factually and commercially’ and filed papers in the Johannesburg High Court. The Guma Tac Group argued that the union owed them in excess of R8 million and co-owner Ichikowitz more than R2 million.
At the time, GLRU president Kevin de Klerk denied that the union was bankrupt and said they were willing to repay Gumede and co. He also believed that the court papers were ‘filled with many half truths’.
On Thursday, acting GLRU CEO Ruben Moggee told The Times that a deal between the two parties was settled out of court.
‘Unfortunately, because it was an out-of-court settlement, I cannot divulge what that figure was. Both parties have to agree before that kind of information is made public,’ said Moggee.