Just one week after announcing it would bankroll The Pickers, Club Maitland City has announced its financial backing for the city’s ailing leagues club.
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The club’s administrators Shaw Gidley told Fairfax Media the bowling club has entered into a temporary funding agreement with the leagues club so it can continue to trade.
The news came 24-hours after a meeting of leagues club creditors was held.
Fairfax Media reported last week how Maitland Leagues Club had gone into voluntary administration owing some of its creditors hundreds of thousands of dollars. Following The Pickers’ sponsorship announcement there had been mounting speculation that Club Maitland City may extend an amalgamation offer to the leagues club.
In a statement to Fairfax Media on Thursday, Shaw Gidley’s Jeff Shute said the arrangement is temporary. “Further to Club Maitland City’s financial backing and sponsorship agreement with Maitland Pickers, Club Maitland City has entered into a limited temporary funding agreement with the administrators of Maitland District Leagues Club Limited, Shaw Gidley, to allow Maitland District Leagues Club to continue to trade during the voluntary administration period.
“Club Maitland City has reached this agreement with the administrators for temporary funding to allow them some time to work with creditors to achieve the best possible outcomes for rugby league in the Maitland district,” Mr Shute said.
“The temporary funding will cover any unexpected trading shortfalls during the administration period. This will allow administrators and creditors, to consider all options to achieve the best possible outcome for the club’s creditors and rugby league in Maitland,” he said.
