UK bookmaker Betfred’s offer to acquire Phumelela Gaming & Leisure has been rejected by the beleaguered South African racing operator’s creditors.

On Tuesday, Phumelela’s creditors voted in favor of a business rescue plan that will see Mary Oppenheimer Daughters (MOD) – a fund backed by one of the country’s wealthiest families that is also one of Phumelela’s biggest creditors – assume control of Phumelela’s horseracing assets, racetracks, offshore assets and broadcast rights.

Phumelela filed for business rescue (a local form of bankruptcy protection) in May after its debts began to swamp its dwindling revenue. The company is coming off the “worst year” in its 22-year history after regulatory changes in Gauteng province deprived Phumelela of a vital betting revenue stream.

While MOD offered Phumelela some emergency financing and the promise of a bigger payday in exchange for the racing assets, Betfred made a last-minute bid for the entire Phumelela business that promised creditors full repayment versus MOD’s minimum guarantee of 72% repayment for most non-bank creditors.