Nine of Maitland Leagues Club's 124 creditors have met and voted to terminate the Deed of Company Arrangement they made with the club and sadly place the Hunter institution into liquidation.
The meeting, held on Thursday, January 3, appointed insolvency firm Shaw Gidley’s Jeff Shute as liquidator.
Mr Shute will now release the club’s assets and distribute the funds to the business’s creditors. All assets of the club, including the building, poker machine entitlements, equipment and furniture will be sold to pay out creditor claims.
In terms of a potential sale, Mr Shute said: “We are currently liaising with several parties who have expressed interest in acquiring the building.”
Maitland Leagues Club went into voluntary administration early last year owing creditors, including St George Bank, $4.5million.
We are currently liaising with several parties who have expressed interest in acquiring the building.Liquidator Jeff Shute.
Its 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.
After the announcement the club had gone into administration Club Maitland City bankrolled it with a $200,000 loan. Maitland City CEO Ian Martin said late last year his club was still owed that money.
In March last year Maitland City signed a 30-year-deal, worth tens of thousands of dollars annually, to guarantee Maitland rugby league club, The Pickers’, long-term future which came with the blessing of the leagues club - The Pickers’ traditional backer.
The leagues club was unable to trade its way out of its deep financial hole, and was unable to secure additional funding from Maitland City to enable ongoing trade to achieve amalgamation.
This left the club’s board with no alternative but to close its doors in December.
“The club’s assets are insufficient to pay creditors’ in full as required by the Deed of Company Arrangement,” Mr Shute said.
“It appears the club is unable to meet certain pre-conditions associated with the amalgamation.
“Unfortunately, it appears that the amalgamation will no longer proceed,” he said.