The Gold Coast Titans’ Property Trust has been placed into voluntary administration in a move the organisation says will reduce debt across the group, and ensure the viability of the NRL franchise.
The Titans say the move for the Property Trust, which is separate to the football club, will reduce significant debt and allow payments to be made to creditors.
The organisation insists the move will have no day-to-day impact on the club.
Managing director Michael Searle says the decision will see creditors receive a far greater return than if the Property Trust had gone into liquidation.
“We are aiming for the best possible outcome for the creditors in these most difficult of circumstances,” Searle said in a statement.
“While the decision was not an easy one, in the end, it was the best option for all concerned.”
The Titans said placing the Property Trust in the hands of administrators will also help in the settlement of the sale of the Centre of Excellence.
The development of the multi-million dollar facility is at the heart of the financial quagmire the club finds itself in.
The tactic is designed to head off Friday’s action in the Federal Court by Reed Constructions which says it is owed more than $1 million for work on the complex.
Reed Constructions was to begin proceedings on Friday to wind up the trust.
Titans legal representative Ashley Tiplady from Nyst Lawyers said the Titans will press for the voluntary administration to be advanced in the Federal Court in Brisbane on Friday.
“Acceptance of the proposal put forward by Mr Searle would be a much better result for creditors as it would yield a far higher return for them than in the event of the Reed Group’s desired liquidation,” he said.
“It would have been a far easier decision to allow the company to go into liquidation but, by putting forward the proposal, Searle is not walking away from the situation. He is stumping up his own money to ensure the best outcome for the creditors,” said Tiplady..”
The NRL was advised of the club’s decision on Thursday.
