REBOUND PLAN FOR BLAZE’S $12 MILLION DEBT

Written on the 14 June 2012

REBOUND PLAN FOR BLAZE’S $12 MILLION DEBT

THE financially-stricken Gold Coast Blaze basketball organisation has been thrown a lifeline after creditors today agreed to a deed of company arrangement (DOCA).

The business, which went into voluntary administration last month, owes more than $12 million, administrator Roland Robson, from Aggs Robson, revealed today.

Under the DOCA, which provides an avenue to trade out of financial trouble, priority creditors will receive 73 cents in the dollar.

Unsecured creditors will get just 7 cents per dollar of debt, says Robson.

Under the DOCA, Blaze owners Owen and Katie Tomlinson have been given 21 days to inject $300,000 into the company, he says.

Robson says former Blaze coach Brendan Joyce, who won a Supreme Court judgement against the organisation over his dismissal, will be offered around $30,000 of the $310,000 he was awarded by the court. The full amount is about $560,000.

A legal spokesman for Joyce, who was at today’s DOCA announcement, indicated that offer would be challenged.

Basketball Australia acting CEO Scott Derwin says the Blaze will have about one month to seek inclusion in the next season of the national competition, which starts in October.

Derwin says the organisation must find a new investor and prove it has the backing to finish the season.

“We will need to sit down with the administrator and the owners of the Blaze and talk to them about their budgets and their funding. We need a strong assurance, through guarantee and otherwise, they have that ability to start and finish the season,” says Derwin.

Robson says Blaze still has four athletes under contract who will continue to be paid undisclosed amounts.

Uncontracted players, like foundation player James Harvey, who attended today’s announcement, have not received their full entitlements.

Owen Tomlinson (pictured) used the DOCA announcement to apologize to creditors and investors, who include Gold Coast mayor Tom Tate.

“I am certainly upset by the fact people lost money,” says Tomlinson.

“We are trying to go ahead and keep negotiating with a party that has shown an interest and wants to help support us.’’


Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter