Club Coffs creditors will be paid
CREDITORS of Club Coffs will receive 100¢ in the dollar but how and when will depend on what arrangements they agree to.
Administrators David Morgan and Morgan Chubb from Clout and Associates spoke to about 80 creditors yesterday and another 170 club members on Tuesday night outlining their early assessment of the club’s financial position and possible future moves.
The board of Club Coffs put the West High Street club into voluntary administration last Monday.
“We have been in there for a little while and have had an opportunity to look at the entire structure of the company and assess why it is here and what creditors are likely to get, but this is only the first meeting of creditors,” Mr Morgan said. “The club is asset rich but cash flow poor.”
Creditors at yesterday’s meeting included local suppliers and club staff members.
The club has 49 staff members.
The Australian Taxation Office and the Office of State Revenue, both creditors of the club, were not represented.
The club’s largest creditor, according to the club’s 2009 financial statements, is the National Australia Bank which is owed about $400,000 but the NAB is a secured creditor.
Mr Morgan said while they were supervising and running the club, they were also continuing to investigate the business and would provide creditors with a report on or about February 28.
A second creditors’ meeting is planned for March 7.
“At this stage we don’t see liquidation as an option,” Mr Morgan said. “Something Morgan and I need to look at is the ability of the club to generate profits.
“We don’t want to close the doors and sell the land.”
There is a possibility the board will put forward a deed of company arrangement which will outline how much they can pay creditors now and when they can pay the balance.
He said the amount owed was still being evaluated and they would not know for some time what was available to creditors now and how long it would take to pay them in full.
“The club can’t pay it in full now,” he said.
“In an ideal world they (creditors) will get something now and the rest out of profits but that is up to the creditors.
“Ideally we would like to get everyone paid their money by the end of 2012.
“On current projections that should be possible.”