Club future on the line
A MEETING of creditors will decide the future of Club Coffs.
Currently the long-standing club is creating enough cash flow to survive but not enough to pay creditors in full.
On Monday, creditors will be asked to vote on either seeing Club Coffs go into liquidation or allowing a variation of the current deed of company arrangement which would give Club Coffs more time to find sufficient funds to pay creditors and/or find a partner for amalgamation.
Administrator David Morgan from Clout and Associates said Monday's meeting would discuss options available to creditors .
"The meeting is to provide creditors with an opportunity to obtain an update on the administration to date and the various options available to them and how each option will affect the timing of a distribution to the creditors," Mr Morgan said.
"Creditors will still receive a distribution in full, it is just a matter of when. The board is currently exploring a number of avenues to allow for a distribution to be paid to creditors in a timely manner while also preserving the club itself."
The club's ordinary unsecured creditors have so far been paid a partial distribution at a rate of 34 cents in the dollar. Due to a variety of reasons this figure is not as high as first anticipated.
Club Coffs has received two formal offers to amalgamate with other registered clubs within NSW after calling for expressions of interest.
Club Coffs chose to proceed down the amalgamation path with another Catholic club from outside the area. Recently that club withdrew its offer of amalgamation as did the second club.