A private company is suing Western Province Rugby (WPR), which has been provisionally liquidated since two weeks ago.
Advertising sales company Aerios claims the WPR faked bankruptcy for ulterior motives, in an effort to dodge a legal battle with them.
Aerios CEO Costas Constantino says his company and the WPR had two commercial deals which the WPR reneged on.
The first was an advertising rights agreement contract for exclusive advertising rights to sell stadium space.
The second deal was to wi-fi and digitise the stadium in a multi-million rand development contract in an exchange for content rights.
But Constantino says the WPR went back on several arrangements, and renewed sponsorship agreements with other partners.
He says Aerious took WPR to court over the breached agreements and soon after WPR (Pty Ltd) announced it was wound up.
The advertising partners filed court papers this week suggesting that the liquidation application was a part of ruse to get out of their contractual obligations.
They seem to think they are going to walk over us, cut us out and carry on. It is not going to be business as usual.— Costas Constantino, Aerios CEO
Western Cape Rugby declined to comment and referred CapeTalk to a previous media statement.
Listen to the Aerios CEO explain the legal predicament their in: