The Golden Lions Rugby Union have narrowly avoided being put into liquidation when they came to an out of court settlement with former sponsoring partners Guma Tac.
Guma Tac applied for the Golden Lions Rugby Union to be liquidated after the two organisations parted company last year.
Acting Golden Lions CEO Ruben Moggee said yesterday: "We have paid an amount which was sufficient for the Guma Group to withdraw (its) application for liquidation."
"Unfortunately, because it was an out-of-court settlement, I cannot divulge what that figure was as both parties have to agree before that kind of information can be made public."
Guma Tac is jointly owned by businessmen Robert Gumede and Ivor Ichikowitz who partnered with the Lions for eight months last year before they split in June.
Guma Tac took the struggling Lions to court with the intention of forcing them into liquidation and said in court papers that they had been forced to pay the union's players' salaries and that the union's "liabilities exceed its assets by tens of millions of rand".
Papers submitted to the courts said that the Lions owed Guma Tac more than R8-million and Ivor Ichikowitz about R2-million.
Moggee refused yesterday to elaborate on the details of the case as it was settled out of court.
"That was the main part of the claim, but we have some smaller issues that we still have to resolve."
"Those arguments are of a legal and technical nature and because it is ongoing, I cannot go into details," he told Times Live.