Last week, Betfred offered to buy the racing operator for a deal worth up to ZAR925m ($55.2m), as well as a ZAR650m loan, which would have been used by Phumelela to pay off its significant debts.

However, creditors have decided to accept the original rescue deal from MOD, one of Phumelela’s biggest creditors, which will see it acquire the operator’s racing assets for ZAR180m, and shares held in Phumelela Gold International, for ZAR300m.

The total value of the business rescue plan is expected to reach ZAR920m, as opposed to Betfred’s counteroffer of up to ZAR925m, with creditors to receive a minimum guarantee of 72%, less than the 100% Betfred had promised.

MOD has already supplied the racing operator with a ZAR100m loan, and the business rescue plan also states a ZAR550m guarantee payment to creditors will also be provided.

Phumelela previously announced details of its business rescue plan in response to the coronavirus pandemic, with the continued suspension of its race meetings leading to debts increasing to more than ZAR600m.