TITANS BUY TIME WITH MOVE TO VOLUNTARY ADMINISTRATION

Written on the 23 April 2012

TITANS BUY TIME WITH MOVE TO VOLUNTARY ADMINISTRATION

THE Gold Coast Titans Property Trust's move into voluntary administration has delayed wind up proceedings from Reed Constructions in the Federal Court.

Reed, which built the Centre of Excellence and is owed $1.046 million, agreed to delay proceedings until after a creditors meeting in May. The case will return to court on June 1.

The case was scheduled to go before the court today, but the parties agreed to adjourn the matter after Titans managing director Michael Searle moved his company into administration. Titans legal representative Ashley Tiplady from Nyst Lawyers says it is the best move for creditors.

“Acceptance of the proposal put forward by Searle would be a much better result for creditors as it would yield a far higher return for them than in the event of the Reed Groups’ desired liquidation,” says Tiplady.

”It would have been a far easier decision to allow the company to go into liquidation but by putting forward the proposal Searle is not walking away from the situation, he is stumping up his own money to ensure the best outcome for the creditors.”

The Titans announced the voluntary administraion in a statement yesterday, saying it had been undertaken with the aim of shoring up the viability and sustainability of the Titans Football Club as the group moves to reduce significant debt.

The move will not have an effect on the day-to-day running of the football club and the NRL has been advised of the situation.

Voluntary administration will also assist with the settlement of the sale of the Centre of Excellence to Phil Ward and Bob Clarke announced earlier this month .

KordaMentha will take over as administrators with Robert Hutson and Ginette Muller in charge. They have worked with Searle to create a Deed of Company Arrangement (DOCA) will be put forward, which Searle says will allow creditors to receive a greater return on monies owing than if the Property Trust was placed into liquidation.

“While the decision was not an easy one, in the end it was the best option for all concerned,’’ says Searle.

 

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