Maitland Leagues Club announces it has gone into voluntary administration

By , 17/12/2018 16:21

Maitland Leagues Club has gone into voluntary administration owing some of its creditors hundreds of thousands of dollars.

The club’s board of directors resolved at a meeting on March 11 to place the Bulwer Street businessinto voluntary administration appointing Newcastle-based insolvency firm Shaw Gidleyadministrators.

The club’s president Ben Newcombe declined to comment when approached byFairfax Mediathis week, instead directing our questionsto administrators Paul Gidley and JeffShute.

The news came just two days after Club Maitland City announced it would bankroll the Maitland Pickers for an undisclosed sum overa minimum of 30 years.

That announcementendedthe team’s long time affiliation with the leagues club as its major sponsor.

Picker’s President Frank Lawler said news of the voluntary administration was a sad day for rugby league in Maitland, the leagues club staff and its patrons.“Hopefully they can trade out of this,” he said.

Despite the news,it was still business as usual for the club Mr Shute said.

“The club is continuing to trade andwe are currently exploring several options that are available to the company including a possible restructure or amalgamation. Unfortunately, due to confidentiality issues I cannot make any further comment at this point,” hesaid.

There is mounting speculation thatClub Maitland City mayextend an amalgamation offer to the club following last week’sannouncement of its long term, big ticket sponsorship for the Pickers.Club Maitland City President, Henry Meskauskas, said he was unable to comment at this stage.

Mr Shute said the club is continuingto trade as normalwith all employees still working. He said unsecured creditors were owed $224,000 but would not disclose what the club owedits secured creditors.

“We have the support of the employees assisting us, support fromkey suppliers and stakeholders to the business includingTabcorpGaming Solutions,” he said.

“Although the company has been experiencing cash flow issues for sometime, the records of the company report a substantial net asset position,” Mr Shute said.

“Part of our investigationwill focus on trying to determine thereasons for the club’s failure.After investigations are carried out we will report to creditors within 25 business days,” hesaid.

A meeting of the club’s creditors will be held on March 21.

In 2008the thencashed upclub lodged adevelopment application with Maitland City Councilfor a$5million project which was to includea clubrefurbishment andthe construction of a 40-room motel onitsElgin Street propertywhich is linked tothe Bulwer Street club.

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