TITANS PROPERTY FACES BANKRUPTCY HEARING
Written on the 28 March 2012
THE Gold Coast Titans’ debt-ridden property arm faces a bankruptcy hearing next month after a Federal Court ruling today allowed a major creditor to begin wind-up proceedings.
The court gave Reed Constructions permission to seek $1.046m from the Titans' property arm placing further strain on the Gold Coast NRL club, which reportedly has debts totalling $35 million.
The court set the matter to be dealt with on April 20, which gives the Titans’ property group less than 30 days to prove its solvency and avoid being declared bankrupt.
The ATO used the hearing to ask the court for leave to withdraw from proceedings after it advised an undisclosed prior arrangement had been made with the Titans property arm.
Solicitor Ashley Tiplady, for Titans Property, told the court his client agreed a prima face case exists that the property group is insolvent.
The court ruling is the latest setback for the Titans, who have won just a single game so far in the 2012 NRL competition.
The Australian Rugby League Commission has asked external accountants to audit the club’s finances. The NRL has also declined to offer any further financial bailout for the beleaguered club so far.
However, NRL boss David Gallop says he is determined to keep the Titans afloat while admitting the organisation is under ‘considerable financial stress’.
“We are working through the options,’’ he says.