Troubled golf club's administrator in talks with buyers
THE administrator appointed to the Peregian Springs Golf Club Ltd is negotiating with two potential buyers for the 18-hole course and clubhouse.
Gavin Morton of Morton's Insolvency Accountants was appointed as administrator of the club on Tuesday.
He would not reveal the names of the two interested parties, saying to do so may jeopardise negotiations.
Mr Morton said Peregian Springs Golf Club Ltd was a trading company whose assets consisted essentially of stock at hand and machinery.
Peregian Springs Holdings owns the freehold of the land on which the course sits and the clubhouse.
Mr Morton said his strategy was to continue to trade while dealing with the assets of the club.
"Expressions of interest are coming through related to the freehold and the clubhouse," he said.
"Ideally the new buyer would purchase the land and enter into a lease arrangement with the trading entity.
"Due diligence needs to occur."
Aveo, the developer of Peregian Springs, is the major shareholder in the club but does not have a board representative.
The board wrote to members this week blaming the thwarting of a move to sell the club to a private buyer, the likelihood the sale of land for development would be blocked or delayed and that 60 members had been unwilling to pay a $1000 levy as the roots of its financial concerns.
It cited dwindling cash reserves which had increased the risk of insolvent trading by July-August this year.
The board determined the "best hope for the future" lay in the appointment of an administrator.
On Monday it suspended acceptance of levy payments and the receipt July-September quarterly subscriptions.
Payment of both can now be made to the administrator for those wanting to continue to use the club's facilities beyond June 30.
The July 1 creditors' meeting will be held at the club from 9am and is open to share holders and members.