Maitland Leagues Club went into voluntary administration earlier this year owing creditors, including St George Bank, $4.5million.

The Bulwer Street premises has now been listed for sale under private treaty. If sold for the $2.3million it has been listed for, employees and St George Bank will be paid in full, but other creditors will only receive between 39 to 52 cents for every dollar owed. 

The club went into administration earlier this year and Club Maitland City bankrolled it with a $200,000 loan. The leagues club was unable to trade its way out of its deep financial hole, leaving administrators, Shaw Gidley, with no alternative but to close its doors last week.

Jeff Shute from Shaw Gidley said the club was unable to secure additional funding from Club Maitland City to continue trading. “It has now ceased trading, breaching the terms of the Deed of Company Arrangement,” Mr Shute said. “I believe the assets of the club are now insufficient to pay creditors’ claims in full as required by the Deed of Company Arrangement.

“It appears the club is unable to meet certain pre-conditions associated with the amalgamation and it is unlikely the amalgamation with Club Maitland City will proceed,” Mr Shute said.

A creditors’ report said that for November and December this year the club owed Tabcorp Gaming Solutions $101,000 and due to its inability to pay these fees, is expecting a termination fee between $1m and $1.5M to be claimed by Tabcorp.

Club Maitland City CEO Ian Martin said his club is owed $200,000. “It’s disappointing that all the work that has gone into this has been for nothing,” Mr Martin said.  “But trading could not be improved enough.”

A creditors’ meeting will be held on January 3 to consider termination of the Deed of Company Arrangement and to place the club into liquidation.