Closure of once prestigious golf club 'no surprise'
LATEST: PEREGIAN Springs Golf Club administrator Gavin Morton says today's closure of the club house and course was necessary because he had simply run out of money to operate.
Mr Morton said the income generated was not sufficient and attempts to sell as a going concern had stalled because of the need to gain an ongoing lease from the holding company.
He said the holding company, which owns the course and the clubhouse, had to be satisfied of the financial capacity of any tenant.
Mr Morton has engaged four grounds staff and two staff in administration to maintain the assets.
He said in the event of no satisfactory tenant being found it was likely the holding company would maintain the premises and course while it decided what to do with it.
The course and clubhouse are now closed.
Members who paid their subscriptions before the administration were now creditors while those paid post Mr Morton's appointment would be refunded the balance of their fees within the next two weeks.
"There are really no surprises,'' Mr Morton said.
"I could not have been clearer at the first creditors' meeting re the options and possible outcomes.
"The surprise is the club has been able to battle on for so long under administration."
UPDATE: THE troubled Peregian Springs Golf Club will close this afternoon at 5pm with staff stood down except for a skeleton crew left to maintain the course.
Calls to the club have gone unanswered and administrator Gavin Morton, of Morton Solvency Accountants, is yet to return calls.
The move comes just a day after Mr Morton wrote to creditors saying he would seek a 45-day extension to the second creditors' meeting which was due on July 26.
EARLIER: THE administrator of the troubled Peregian Springs Golf Club is seeking to delay a meeting of creditors which had been planned for July 26.
Gavin Morton of Morton's Solvency Accounting has written to creditors with his intention to secure through the courts a maximum 45-day extension to the meeting because he is not yet in a position to provide recommendations on the best path forward.
He said he requires more time to realise assets, to carry out investigations and provide an estimate of the potential return to creditors.
Mr Morton wrote he remained unable at this stage whether to enter a Deed of Company Arrangement. end his administration or wind up the company.
He has engaged Global Asset Valuers to assess assets but remained hampered by uncertainty over whether some are subject to finance arrangements.
Mr Morton also reported to creditors that a number of parties have expressed an interest in purchasing the golf club business as a going concern although no formal offer has been received.
He said any sale was contingent on a lease being granted by Peregian Springs Golf Holdings which owns the land and the buildings being the clubhouse and golf course.
Peregian Springs Golf Holdings is an entity in which developer Aveo holds the controlling interest.
Aveo is seeking to purchase land within the golf course for further residential subdivision which could not go ahead if a Material Change of Use application now with Sunshine Coast Council is approved.
The MCU has attracted 921 objections and is expected to be considered by councillors at their August ordinary meeting.
Aveo is seeking approval to have two parcels of the golf course on Lakeside Dr and Greenside Dr rezoned for residential development.
While the application involves only 1.06 ha of land which is thought to represent only 1.8% of the golf course parcel, spokesman for Peregian Springs Supporters Group, Greg Smith, said it contained some of the best vegetation.
Objectors contend it would also destroy the amenity of those who paid a premium for golf course frontage and access.