The Port Elizabeth High Court has ruled that EP Rugby should be placed under provisional liquidation after failing to resolve its financial woes.

EP Rugby has faced a financial crisis for over six months, and after failing to pay salaries that date as far back as last September, a group of players took legal action to bring a liquidation application to court.

Joint liquidation proceedings on behalf of some 36 players were heard in the Port Elizabeth High Court on Thursday, with claims amounting to millions as the result of unpaid wages.

A ruling was duly handed down to place the beleaguered union under provisional liquidation, with EP Rugby Pty Ltd being given until 10 May to settle the outstanding debts or face the prospect of the order becoming final.

Last November, SA Rugby completed an emergency takeover of the Southern Kings Super Rugby franchise, but EP Rugby has remained in dire financial straits, with promises of money failing to materialise.

'It is important to note that the provisional liquidation does not impact on the day to day operations of the Pty Ltd in any way,' it was noted in a statement released on Thursday. 'This means that EP Rugby Pty Ltd will continue with our preparations for the upcoming Currie Cup tournament that begins on 8 April. Further, it should be noted that the EP Rugby Union executive have been given a mandate by the clubs during the special general meeting on 25 February to seek business rescue in order to stabilise the financial circumstances of the union. We are currently engaging with our legal advisors as well as with SA Rugby, government and other stakeholders on this matter.'

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