CREDITORS of Club Coffs voted unanimously to approve a deed of company arrangement at yesterday’s creditors’ meeting, the second held by the administrators.
After payment to the club’s major creditor, the National Australia Bank, which was a secured creditor owed
$408,000, the club owes its remaining creditors about $1.1 million, which includes future employee entitlements.
The deed of arrangement outlined by administrators Morgan Chubb and David Morgan from Clout and Associates involves the sale of a number of properties owned by the club in West High Street and Gundagai Street.
It also means that creditors must be prepared to wait until December 2012 to receive the full amount they are owed but a possible part-payment could be made in six to eight months.
The board of directors put Club Coffs into voluntary administration on February 1.
At that time Club Coffs president Paul Griffin and CEO Carl Mower cited the withdrawal of lending facilities by the NAB; an expensive legal battle; general community hardship and a decrease in turnover throughout all areas of the club as the reasons for the move, which allowed the club to continue providing its usual services and facilities.
Club Coffs is still waiting to receive $160,000 in Supreme Court legal costs awarded to it against C.ex Coffs as a result of last year’s legal action involving the new naming used by both clubs.
Among the creditors are the West Coffs Men’s and Women’s Bowling Clubs.
At the conclusion of yesterday’s creditors’ meeting women’s bowling club treasurer Elisabeth Habgood, speaking as an individual club member, said the proposals ‘sounded fairly positive’.
“We will see how we go for the next four months” Mrs Habgood said.
“Things have picked up in the restaurant and cafe.”
Staff member Daniel Harmer, who has worked at the club for 24 years, said they now knew where they were.