After atumultuous week of outspoken challenges against the Special Resolutions broughtby the Gold Circle Board before their Members, the 4 motions failed narrowly toreceive the 75% required, achieving support of between 70-72% for each vote.
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Business rescue was a loomingthreat for the Operator and would have been the likely course of action had itnot been for the generosity of Hollywoodbets to offer an unsecured loan of R40mto Gold Circle. 'It would have been a tragedy for all the stakeholders ifracing had to stop when the company went into business rescue, said MichelNairac, CEO of Gold Circle. He continued 'I am relieved that thestakeholders who depend on racing can continue to benefit from it. Ï amgrateful to Hollywoodbets that racing will continueuninterrupted until the next Special General Meeting can beconvened'.
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Speaking on behalf of theHollywood Sportsbook Group, Basil Thomas said 'It is no secret how difficultthings have been for stakeholders in the horse racing industry over the pastfew months. Severe hardship and real anxiety has been experienced byparticipants, that extend way beyond Gold Circle Racing Club. Grooms,Trainers, Jockeys, Breeders, Owners, Tote Agents, Suppliers…the list isendless.
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'So much good work has been doneto get horses back on the track. In short, it would have been a disaster ifracing had once again been interrupted for an extended period. The KZNWinter/Champions Season is the flagship of the national racing calendar. For itto not be completed would be the unnecessary raising of the white flag.
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'Hollywoodbets is averseto ‘racing politics'. We are not picking a side and we have no desire tobe caught in the middle. We have one agenda – that is to apply our resources –financial and human, to supporting Gold Circle in its quest to return toprofitability. The natural consequence of that objective, if successful, willbe a stronger and sustainable future for KZN Racing. The events of the pastweek could well have resulted in unintended or unanticipated consequences.We are pleased that such consequences have been averted.'
