Any glimmer of hope in resurrecting Maitland District Leagues Club has now been lost, with the property sold for more than $1million less than its original valuation and its settlement set down for next Wednesday.
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The news marks the final nail in the club's coffin after it went into voluntary administration last year and a battle to save the iconic landmark was launched by Club Maitland City.
Liquidator Jeff Shute from insolvency company Shaw Gidley, confirmed contracts for the $1.9million sale of the building were exchanged on February 13.
The property was initially valued at just over $3million but the club was unable to satisfy several conditions associated with the sale, primarily relating to securing the rights to an adjoining car park resulting in the purchaser rescinding the contract.
Mr Shute would not disclose who purchased the property, nor what is planned for the Bulwer Street site.
"I anticipate paying outstanding employee entitlements in full following the sale of the building,and the realisation of the gaming machine entitlements which I expect will be paid by the end of June," Mr Shute said.
"I have received and accepted offers on all of the gaming machine entitlements and will report to creditors following the sale of the building and the entitlements in early May," he said.
The club went into voluntary administration early last year owing creditors $4.5million. Club Maitland City bankrolled it with a $200,000 loan - money still owed to Club Maitland City.
A meeting of creditors was held in January to consider the termination of a Deed of Company Arrangement with Club Maitland City because the terms of the deed had been breached. Mr Shute was then appointed liquidator for the purpose of "winding up" the club.
He also said terms of an amalgamation agreement between the two clubs were unable to be achieved or varied and as a result the deal was quashed. Mr Shute said the club's 76 gaming entitlements (poker machines) that were to be transferred to Club Maitland City under the proposed amalgamation have now been sold.
He is now required to report to the Australian Securities and Investments Commission and is in the process of undertaking investigations in relation to any potential claim against club directors for insolvent trading. He said the liquidation process should be complete by December.
